Poland lost $230m in cryptocurrency trying to buy Venezuelan oil in 2023 — USB drives with crypto handed directly to scammers

In 2023, Poland's state-backed energy company Orlen lost $230 million attempting to purchase Venezuelan oil amid sanctions. Orlean invested $600 million and planned to buy 6 million barrels during a reprieve from sanctions. Executives decided to use the USDT stablecoin, pegged 1:1 with USD, for the transaction. Orlen enlisted external company Hannon to handle the purchase, who in turn worked with UK firm Lexcor Energy, which supposedly had a Venezuelan office.

First, Hannon needed to convert a large sum of USD into USDT, which they did by exchanging $245 million at multiple Dubai companies, adding $15 million of their own funds. Only one of the three exchanges, totaling $80 million, was successful; the other two failed. A third exchange of $30 million also vanished, partially returning later. Orlen ended up with -$80 million, while Hannon held 165 million USDT.

Three Polish oil tankers headed to Venezuela but anchored there, accruing millions in demurrage and port fees due to prolonged chartering. Weeks of delays followed, blamed on Venezuelan energy company PDVSA. Hannon's representative Kam Tse traveled to Venezuela with another colleague, carrying USDT in USB sticks for storage in cold wallets. They stayed in high-end hotels, drove in armored cars, and employed bodyguards, fearing for their safety and the money.

Tse visited brokers claiming to be from PDVSA, but many proved deceitful. Tse handed $60 million USDT to a purported Synergy representative, then another $50 million USDT. The latter vanished. After experiencing further losses, Tse ordered a purchase of 1 million barrels of lighter blend oil, finding it contaminated and switching to fuel oil contracts. Some of the money spent in Dubai exchanges came back, but Tse never received the remaining funds or further deliveries.