FT: Poland Lost $230 Million in an Attempt to Buy Venezuelan Oil With USDT

• Polish state-owned company Orlen paid trader Hannon International a $230 million advance for Venezuelan oil, but did not receive the promised volume.
• A significant portion of the funds was supposed to be converted into USDT to settle payments with Venezuelan intermediaries.
• The Polish government estimated Orlen’s total losses from the deal at at least $424 million, including vessel chartering costs and other expenses.

Polish state energy company Orlen lost $230 million in a failed attempt to buy Venezuelan oil through Dubai-based trader Hannon International. The company transferred the funds as an advance payment, but ultimately did not receive a significant portion of the oil.

This is according to an investigation by the Financial Times, based on internal Orlen documents, court filings, vessel-tracking data, blockchain analysis, and interviews with people involved.

How Orlen struck the deal

The story began in late November 2023 during the Formula 1 Grand Prix in Abu Dhabi. The head of Orlen’s trading unit, Orlen Trading Switzerland (OTS), Samer Awad, met with Hannon International’s founder, 25-year-old Kam Ho “Alex” Tse.

A few days later, on November 29, OTS signed a contract with Hannon to buy around 6 million barrels of Venezuelan heavy crude Merey 16 from state oil company PDVSA. The deal was valued at $345 million.

Orlen expected to make $25 million to $30 million in profit from the transaction. Under the contract terms, two-thirds of the amount had to be paid upfront. Within five days, OTS transferred $230 million to Hannon.

At the same time, the contract itself did not mention cryptocurrencies or intermediaries. However, Hannon was responsible for purchasing the oil from PDVSA and ensuring delivery to Orlen.

Intermediaries and USDT

After receiving the funds, Hannon began looking for ways to buy Venezuelan oil and convert part of the money into USDT.

At first, the company obtained 80 million USDT through a Dubai financial firm, paying around $400,000 in fees. For the remaining amount, Hannon turned to other intermediaries.

In particular, Hannon transferred $135 million to Dubai-based company Horizon Global, but, according to the trader, received only 85 million USDT. The $50 million difference became the subject of a court dispute in Dubai.

Another $30 million was transferred by Hannon to Gold Mar International Trading. The company expected the funds to be converted into USDT and, via a Venezuelan intermediary, passed on to PDVSA. However, the money never reached the state oil company. According to Hannon, Venezuelan contacts advised them not to keep records of cryptocurrency transactions.

USB Drives With Millions in USDT

In January 2024, Alex Tse and a colleague traveled to Caracas to try to arrange oil deliveries themselves. According to the FT, they used an armored vehicle and security.

In Caracas, Hannon representatives were in contact with intermediaries who claimed to have ties to PDVSA. Some of the USDT was handed over using USB drives containing digital keys.

On January 5, a Hannon representative handed a man named Jose Castillo a USB drive with access to 60 million USDT. On January 28, he was given another 50 million USDT. Hannon later lost contact with Castillo. FT journalists were unable to obtain comment from him.

Another 11 million USDT in February and 11 million in March, Hannon handed over to a different intermediary — Juan Rodriguez. According to Tse, contact with him was later lost as well.

In total, according to Hannon’s founder, $132 million was handed over to two brokers, but the company received almost no oil in return. Hannon also reported another $54 million in expenses for cryptocurrency transaction fees and other attempts to arrange deliveries.

There Were Three Tankers, but There Was Hardly Any Oil

While the funds were moving between intermediaries, three supertankers chartered by Orlen arrived in Venezuelan waters and anchored near the Jose terminal. Orlen expected Hannon to deliver about 6 million barrels of Merey 16 in three shipments by December 19, 2023. However, the vessels remained without cargo for weeks, and Orlen continued to incur demurrage costs — fees for delayed ships.

Hannon initially explained the delays as PDVSA revising prices, and later as larger buyers being prioritized ahead of the end of sanctions relief.

In parallel, OTS tried to purchase other types of Venezuelan oil to reduce Hannon’s debt. In January, the company rejected a 1 million-barrel cargo due to severe contamination.

On January 26, OTS agreed to buy another 1 million barrels of Venezuelan fuel oil. As a result, on March 8, one of the Orlen-chartered tankers loaded about 500,000 barrels — only half of the planned volume. The rest of the cargo was never delivered.

Orlen Terminated the Contract

By the end of March 2024, the initial deal for Merey 16 remained unfulfilled. On March 28, OTS terminated the contract with Hannon. By that point, vessel chartering costs under the agreements with Hannon had reached $72 million. This exceeded Orlen’s expected profit from the initial transaction.

An internal OTS assessment ahead of a meeting with KPMG auditors put the likelihood of recovering funds from Hannon as low. Later, Orlen’s vessels began leaving Venezuela. Only one of them was carrying oil — about 500,000 barrels of fuel oil worth $28.8 million.

The Polish government estimated Orlen’s total losses at at least $424 million. This amount included not only the $230 million advance payment, but also chartering costs, legal fees, and other expenses related to the deal.

The Parties Have Different Versions of the Deal

Hannon and Orlen interpret the trader’s role in the transaction differently.

Hannon claims the company acted as an intermediary that was supposed to buy Venezuelan oil using USDT, since OTS could not do so directly. Company representatives also say Orlen was aware of the specifics of the transaction.

Orlen’s new management denies this. The company says Hannon committed to delivering the oil, and involving third parties did not relieve it of responsibility for fulfilling the contract.

Orlen is now trying to recover the $230 million through arbitration. A Hannon representative said the company is participating in the proceedings and is open to an amicable settlement of the dispute.

Investigation in Poland

Separately, the Warsaw prosecutor’s office is investigating the actions of Orlen’s former executives over possible inadequate oversight of OTS’s $600 million trading fund.

Former OTS head Samer Awad and other former unit executives were charged with criminal negligence and abuse of office. They deny the allegations.

Awad was detained in the UAE in January 2025 at Interpol’s request. An Emirati court rejected Poland’s request for his extradition, after which he was released.

Former Orlen CEO Daniel Obajtek also denies personal responsibility for OTS’s deals. According to him, decisions on access to the trading fund were made collectively by the company’s board of directors.

As a reminder, in March 2026, Polish President Karol Nawrocki signed a law on sharing data on crypto transactions with tax authorities.

Сообщение FT: Poland Lost $230 Million in an Attempt to Buy Venezuelan Oil With USDT появились сначала на INCRYPTED.