Tether blocked Venezuela’s crypto move

USDT issuer Tether announced that it will block payments to entities sanctioned by OFAC following a report that Venezuela’s state-run oil company allegedly used USDT to facilitate oil exports.

USDT issuer Tether has announced that it will freeze addresses linked to sanctioned entities following a report that Venezuela is using stablecoins to circumvent sanctions.

In a statement to Cointelegraph, the company is committed to stopping payments linked to Office of Foreign Assets Control (OFAC) sanctioned organisations: “Tether respects the OFAC SDN list and is committed to working to ensure that sanction addresses are frozen immediately.”

This development follows a special report by Reuters claiming that Venezuela’s state-run oil company PDVSA is using cryptocurrencies to facilitate crude oil and fuel exports. The country is facing new oil sanctions re-imposed by the US.

21 billion dollars in 2023

According to the report, the US Treasury Department is requesting PDVSA customers and suppliers to stop their transactions until 31 May due to Venezuela’s failure to implement electoral reforms.

As a mitigating move to prevent the freezing of funds in foreign bank accounts as new sanctions take effect.

Reports in 2023 linked cryptocurrency payments to a corruption scandal at PDVSA involving the uncovering of $21 billion in unaccounted receivables for oil exports.

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