$230M Oil Deal Collapses Amid USDT Payment Chaos

A $230 million oil deal gone wrong has been linked to payments in Tether's USDt (USDT) stablecoin. According to a Financial Times report, PDVSA, Venezuela's state oil company, began asking for partial USDT payments as a way to circumvent US financial sanctions.

The largest energy firm in Poland, Orlen, wired $230 million to Hannon International Middle East, a Dubai-based seller, on December 4, 2023. The funds were meant to acquire 6 million barrels of Venezuelan crude oil from PDVSA.

However, most of the USDT was lost during subsequent transfers, and Orlen only received about $29 million worth of oil before terminating the contract. Tether's involvement in the deal highlights the risks associated with using stablecoins as a payment rail, particularly under geopolitical constraints.