YEREVAN (CoinChapter.com) — Venezuelan opposition leaders claim President Nicolás Maduro is using cryptocurrency to bypass international sanctions. The U.S. recently reinstated sanctions on Venezuela’s gold and oil industries due to Maduro’s failure to commit to fair elections scheduled for July.
U.S. Sanctions Pressure Maduro’s Crypto Evasion Tactics
For nearly 20 years, the U.S. has imposed sanctions on Venezuela to push for democratic reforms. Andrew Fierman, head of national security intelligence at Chainalysis Inc., stated,
“The Venezuelan government and the Maduro regime have been doing this across a wide array of methods over the years.”
A report by the Woodrow Wilson International Center for Scholars, co-authored by Venezuelan dissident Leopoldo López and Kristofer Doucette of Chainalysis, highlights loopholes in current sanctions. The report details how Maduro’s government uses cryptocurrency to evade these restrictions.
Maduro’s Crypto Moves Deepen Venezuela’s Economic Struggles
López and Doucette emphasize the economic consequences of the Maduro regime’s alleged cryptocurrency activities.
“Every dollar misappropriated by the Maduro regime rightfully belongs to the Venezuelan people,”
they wrote. The funds could have revitalized Venezuela’s struggling economy.
“The billions that have vanished in recent years represent a grotesque sum, which could have been pivotal in revitalizing the country’s faltering economy. Instead, Maduro’s embrace of cryptocurrency exploited an emerging technology to carve out a new pathway for diverting the nation’s riches, further impoverishing its citizens.”
They urge the U.S. and European Union to implement stricter and more comprehensive sanctions and call on other nations to investigate the Venezuelan government’s use of cryptocurrencies to evade sanctions.
Venezuela Moves $70M in Crypto as Petro Coin Fails
Chainalysis discovered significant cryptocurrency activity linked to Venezuela’s government. Their analysis revealed that SUNACRIP, Venezuela’s National Superintendency of Crypto Assets and Related Activities, has been transferring large amounts of tokens across various platforms. Over $70 million in stablecoins were processed through addresses likely managed by SUNACRIP or its affiliates.
In 2018, the Venezuelan government launched the Petro, a cryptocurrency backed by the nation’s oil and mineral reserves. The goal was to combat hyperinflation and avoid U.S. sanctions. However, the Petro saw limited adoption despite mandates for its use. Earlier this year, the government suspended the Petro amid a corruption investigation involving misappropriated payments intended for the state-run oil company, Petróleos de Venezuela SA.
