Tether Freezes Wallets Linked to Venezuelan State-Run Oil Company PDVSA Amid Sanctions Evasion Allegations

Caracas, Distrito Capital Venezuela (Bolivarian Republic of)
PDVSA increased use of Tether to bypass US sanctions since last year
PDVSA's use of USDT allows company and counterparties to avoid transacting in cash that could be seized by U.S.
Tether freezes wallets linked to Venezuelan state-run oil company PDVSA over sanctions evasion allegations
Tether froze 41 wallets tied to OFAC SDN list in December 2023
U.S. Treasury Department requires PDVSA customers and providers to wind down transactions with the Venezuelan state-run oil company by May 31
Venezuela began experimenting with cryptocurrencies in 2018 as a means to bypass US sanctions
Tether Freezes Wallets Linked to Venezuelan State-Run Oil Company PDVSA Amid Sanctions Evasion Allegations

Tether, a stablecoin issuer, has announced it will freeze wallets using USDT to evade Venezuelan sanctions following reports that Venezuela's state-run oil company PDVSA increased its use of Tether after the U.S. reimposed sanctions on oil exports.

According to multiple sources, including Reuters and CoinDesk, PDVSA has been using USDT via intermediaries to bypass U.S. sanctions since last year when the U.S. imposed restrictions on Venezuela's oil industry due to concerns over its election process.

Tether froze 41 wallets tied to the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list in December 2023, and a spokesperson for Tether told CoinDesk that it remains committed to working with OFAC to ensure sanctioned addresses are frozen properly.

PDVSA's use of USDT allows the company and its counterparties to avoid transacting in cash that could be seized by the U.S. in foreign bank accounts, making it a popular choice for evading sanctions.

The U.S. Treasury Department requires PDVSA customers and providers to wind down transactions with the Venezuelan state-run oil company by May 31 due to Venezuela's failure to implement electoral reforms.

In October 2023, Tether froze 32 crypto addresses tied to terrorism and warfare in Israel and Ukraine. However, it took a stance against freezing wallets tied to sanctioned coin mixing service Tornado Cash in the past.

Venezuela began experimenting with cryptocurrencies in 2018 as a means to bypass U.S. sanctions but shelved its original crypto project, Petro, following a lack of adoption.

The Venezuelan presidential elections began on April 23, 2024, but as of now, no sanctions have been suspended by the U.S., despite signing two Memorandums of Understanding (MOUs) with Venezuela in September 2023 regarding Venezuelan migration to the U.S. and a commitment from the U.S. to rescind all sanctions against Venezuela once the election process began.

The Barbados Accord between the U.S. and Venezuela, signed in October 2023, allowed all candidates who meet Venezuela's Constitutional laws and electoral procedures to run for office and lifted all sanctions against Venezuela, excluding specific individuals.


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Confidence

91%

Doubts
  • Are there any other ways PDVSA could be bypassing US sanctions aside from using Tether?
  • Is there any evidence that the frozen wallets were definitively used for sanctions evasion?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tether Will Freeze Wallets Evading Venezuelan Sanctions

CoinDesk Oliver Knight Wednesday, 24 April 2024 06:31
  • Unique Points
    • Tether has announced it will freeze wallets using USDT to evade Venezuelan sanctions.
    • PDVSA, Venezuela’s state-run oil company, has increased its use of Tether following U.S. sanctions.
    • Tether froze 41 wallets tied to OFAC SDN list in December.
  • Accuracy
    • PDVSA is reportedly using cryptocurrencies, specifically USDT, to facilitate its crude oil and fuel exports due to new US sanctions.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article reports on Tether freezing wallets that are using USDT to evade sanctions in Venezuela. This is an example of an appeal to authority fallacy as the article relies on the statement of a Tether spokesperson without providing any evidence or reasoning for why this is a valid solution or even effective. Additionally, there are dichotomous depictions in the article when it states that using cryptocurrencies allows PDVSA and its counterparties to avoid transacting in cash that could be seized by the U.S., implying that cryptocurrencies are completely safe from seizure which is not true. However, there are no explicit fallacies found in direct quotes from the author.
    • ]A tether spokesperson told CoinDesk[.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Tether vows to freeze assets after Venezuela looks to crypto to bypass oil sanctions

Cointelegraph News Ltd. Gareth Jenkinson Wednesday, 24 April 2024 12:04
  • Unique Points
    • Tether has committed to freezing addresses linked to OFAC-sanctioned entities following a report that Venezuela’s state-run oil company, PDVSA, was using Tether (USDT) to bypass sanctions.
    • PDVSA is reportedly using cryptocurrencies, specifically USDT, to facilitate its crude oil and fuel exports due to new US sanctions.
    • The U.S. Treasury Department requires PDVSA customers and providers to wind down transactions with the Venezuelan state-run oil company by May 31.
    • PDVSA has reworked its spot oil deals in 2024 to a contract model that requires prepayment for exported cargo in USDT.
    • New customers looking to conduct oil transactions with PDVSA are required to hold cryptocurrency in a digital wallet.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Games Biden Plays

CounterPunch.org Maria Paez Tuesday, 23 April 2024 05:55
  • Unique Points
    • In 2023, the US held secret meetings with Venezuela in Milan, Qatar, and Mexico to discuss migration and sanctions.
    • The US requested that these meetings be held in secret.
    • In September 2023, the US signed two MOUs with Venezuela. One was regarding Venezuelan migration to the US and the other was a commitment from the US to rescind all sanctions against Venezuela once the election process began.
    • The Venezuelan presidential elections began, but as of now, no sanctions have been suspended by the US.
    • The Barbados Accord between the US and Venezuela was signed in October 2023. It allowed all candidates who meet Venezuela’s Constitutional laws and electoral procedures to run for office and lifted all sanctions against Venezuela, excluding specific individuals.
  • Accuracy
    • PDVSA is reportedly using cryptocurrencies, specifically USDT, to facilitate its crude oil and fuel exports due to new US sanctions.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Venezuela Looks to Tether to Bypass Sanctions: Reuters

CoinDesk Sam Reynolds Tuesday, 23 April 2024 04:54
  • Unique Points
    • Venezuela is using Tether (USDT) to bypass sanctions according to Reuters.
    • PDVSA, Venezuela’s state-owned oil company, is looking to USDT as a means to bypass new sanctions.
    • PDVSA is trying to integrate more usage of USDT as a hedge against having foreign bank accounts frozen.
  • Accuracy
    • PDVSA is looking to USDT as a means to bypass new sanctions.
    • Tether has committed to freezing addresses linked to OFAC-sanctioned entities following a report that Venezuela's state-run oil company, PDVSA, was using Tether (USDT) to bypass sanctions.
    • PDVSA is reportedly using cryptocurrencies, specifically USDT, to facilitate its crude oil and fuel exports due to new US sanctions.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication