Orlen's $345M Stablecoin Trade Ends in Disaster
Poland's state-controlled energy group Orlen is facing one of its costliest trading setbacks after a failed attempt to secure cheap Venezuelan crude.
In late 2023, Orlen's Swiss trading arm, Orlen Trading Switzerland, signed a contract valued at roughly $345 million with Dubai-based Hannon International to purchase six million barrels of heavy Merey 16 oil.
However, the deal unraveled after large advance payments were made through intermediaries and converted into Tether's dollar-pegged token, USDT. Instead of receiving the oil, Orlen was left with little more than idle tanker costs and legal bills.
The affair has become a cautionary case about counterparty risk when commodity trades leave the banking system. The total losses are estimated to be in the range of $378 million, with some internal tallies putting them as high as $424 million.