Tether Will Freeze Addresses Amid Reports of Venezuelan Oil Company Using USDT to Evade Sanctions
Crypto News

Tether Will Freeze Addresses Amid Reports of Venezuelan Oil Company Using USDT to Evade Sanctions

1 хв
1 month ago

In response to a recent Reuters report revealing that Venezuela's state-run oil company, PDVSA, has been utilizing cryptocurrencies to get around its oil and fuel exports sanctions.

Tether Will Freeze Addresses Amid Reports of Venezuelan Oil Company Using USDT to Evade Sanctions
In response to a recent Reuters report revealing that Venezuela's state-run oil company, PDVSA, has been utilizing cryptocurrencies to get around its oil and fuel exports sanctions, Tether, the issuer of the popular stablecoin USDT, has announced its commitment to freezing addresses associated with sanctioned entities. Tether's spokesperson emphasized the company's respect for the Office of Foreign Assets Control (OFAC) SDN list and its dedication to promptly freezing addresses linked to sanctioned entities.
The report from Reuters, which cited anonymous sources, highlighted that Venezuela is facing renewed oil sanctions imposed by the United States. The U.S. Treasury Department has set a deadline of May 31 for PDVSA customers and service providers to wind down transactions due to Venezuela's failure to implement required electoral reforms.

According to the sources, the reimposed sanctions will pose challenges for Venezuela in increasing its oil production and exports because companies will need authorization from the U.S. to engage in business with the South American nation. To mitigate the risk of funds being frozen in foreign bank accounts as the new sanctions take effect, PDVSA has reportedly shifted its oil sales to Tether's USDT stablecoin.

The report further suggests that PDVSA has adjusted its spot oil deals in 2024 to a contract model that necessitates prepayment for exported cargo in USDT. Additionally, the state-run oil company allegedly requires new customers engaging in oil transactions to hold cryptocurrency in a digital wallet.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
3 people liked this article