Orlen's Venezuela crude oil deal losses reach up to $424 million, involving a $230 million USDT prepayment

Odaily reports: In November 2023, Orlen Trading Switzerland, a subsidiary of Polish state-owned energy company Orlen, signed a contract to purchase 6 million barrels of Venezuelan crude oil and paid $230 million in unsecured advance payment to Dubai-based trading company Hannon International for conversion into USDT.

Hannon International subsequently converted the funds through multiple intermediaries, with $135 million converted into only 85 million USDT, creating a $50 million shortfall. Between January and March 2024, private keys controlling over 132 million USDT were handed over via USB storage devices to brokers affiliated with Venezuela's state oil company.

After the transaction, the relevant brokers became unreachable, and the Venezuelan state oil company failed to release the crude oil cargo. Ultimately, only one vessel loaded approximately 500,000 barrels of fuel oil, valued at $28.8 million; Orlen canceled the contract in March 2024, with estimated total losses of $378 million to $424 million.

Polish prosecutors have launched a criminal investigation into the management of Orlen Trading Switzerland, with 3 former senior executives indicted and facing up to 25 years in prison. Orlen has initiated international arbitration in Dubai, seeking to recover the $230 million prepayment. (Bitcoin.com News)