In December 2023, Orlen Trading Switzerland, a division of the Polish state-owned company Orlen, transferred $230 million as an advance payment for Venezuelan oil to a Dubai intermediary, which was never delivered. Some of the funds were converted into USDT and shared with partners in Caracas via USB drives containing private keys. This was reported by the Financial Times (FT) following its investigation.

The Yacht Deal

According to the publication, initial discussions took place during a yacht meeting in Abu Dhabi, involving Samer Awad, head of Orlen Trading Switzerland (OTS), and Kam Ho "Alex" Tse, a 25-year-old founder of the Dubai-based Hannon International.

On November 29, 2023, OTS signed a contract with Hannon for the supply of approximately 6 million barrels of heavy Venezuelan Merey 16 oil, valued at around $345 million. OTS estimated its profit from this deal would be between $25 and $30 million.

The agreement stipulated an advance payment of two-thirds of the contract value. Within five days, Hannon received $230 million—without any collateral or bank guarantees, as noted by FT. In contrast, Orlen typically procures raw materials through letters of credit.

In October 2023, the Biden administration temporarily eased sanctions on Venezuela's oil sector—a license valid until April 2024 provided traders a brief opportunity to purchase inexpensive crude.

The Role of USDT

By that time, Venezuela's state oil company PdVSA had started accepting prepayments in USDT due to being cut off from the dollar banking system. According to Reuters, by the end of Q1 2024, the state company had transitioned a significant portion of spot transactions to a model requiring half the shipment's value to be prepaid in stablecoins, and new clients were required to have a crypto wallet.

However, the contract between OTS and Hannon did not mention digital assets or sub-intermediaries. FT claims that Tse independently converted the dollars received from Orlen's subsidiary into USDT and involved other Dubai firms in the operation.

The scheme began to unravel at the first link: one of the intermediaries received $135 million but only transferred $85 million in USDT. The missing $50 million became the subject of a legal dispute in the UAE. An additional $30 million went to the Dubai-based Horizon Global and did not reach Venezuela, according to investigation findings.

The $230 million advance was not OTS's only payment for Venezuelan oil. As reported by Reuters in May 2024, citing sources and documents, the Swiss branch of Orlen transferred a total of approximately $330 million to two Dubai intermediaries: $230 million to Hannon International and about $100 million to Horizon Global. According to the agency, PdVSA did not receive funds from either intermediary, and the Venezuelan state company did not allocate any loading windows to Orlen or its intermediaries since it requires a prepayment of half the shipment value before scheduling a slot.

USB Drives in Caracas Hotels

In January 2024, representatives from Hannon flew to Caracas to seek individuals with access to PdVSA shipments. FT describes that private keys to the funds were physically transported on flash drives, with meetings held in hotels and restaurants.

On January 5, a local broker received a drive granting access to approximately $60 million in USDT, and on January 28, another drive for $50 million. By late February and early March, another intermediary received two drives, each with $11 million in USDT. In total, according to the publication, intermediaries in Caracas accepted over $132 million in USDT.

No oil was ever loaded onto Orlen's vessels. After receiving the wallets, contact with the brokers ceased, FT reports. Journalists also obtained a photograph of the shipment schedule from the Jose terminal, where Orlen's vessels were listed with a tonnage of 1.9 million barrels of Merey 16 but without specific dates.

Empty Tankers and $72 Million in Shipping Costs

Three supertankers chartered by Orlen arrived at the Jose terminal in December 2023 and remained unloaded for weeks. The contract's delivery deadline expired on December 19, during which time the company paid for the vessels' laytime.

In January, OTS attempted to negotiate a new deal with Hannon for 1 million barrels but abandoned it due to contamination issues with the crude. The parties then agreed on a supply of 1 million barrels of fuel oil—by March, one of the vessels loaded approximately 500,000 barrels, half the agreed volume.

On March 28, 2024, OTS terminated the original contract, and the ships began leaving Venezuelan waters. According to the company's internal assessment, shipping costs related to transactions with Hannon reached $72 million, with auditors estimating a 10% chance of recovering the funds. A dispute with Hannon is currently under arbitration: the intermediary insists it acted as a technical link and purchased the oil in USDT since OTS could not do so directly. Orlen contends that the intermediary was obliged to deliver the crude regardless of third-party involvement.

Criminal Cases and Political Fallout

The Polish government estimates the total loss at no less than 1.6 billion zlotys (around $400 million at 2024 rates), factoring in shipping, legal, and other expenses.

The Warsaw District Prosecutor's Office is investigating the actions of former Orlen executives, including inadequate oversight of a $600 million cash pool that funded OTS operations. Charges have been brought against former OTS head Samer Awad and several other ex-senior managers—all of whom deny wrongdoing.

Awad was detained in the UAE in January 2025 under an Interpol red notice; however, a local court denied Poland's extradition request, leading to his release. In the summer of 2026, prosecutors charged three more former Orlen and OTS executives, facing up to 25 years in prison.

The deals were made under the previous management of the company, led by Daniel Obajtek from 2018 to 2024, who is now a Member of the European Parliament representing the Law and Justice party. The contract was canceled by the new head of Orlen, Ireneusz Fonfara, appointed after the government change in Poland.

Media reports indicate that just two days after the Polish tankers departed, the Venezuelan terminal shipped heavy oil to India's Reliance.

Was This a Scam from the Start?

The answer to this question is the subject of investigations, tangled in numerous intermediaries, counterparties, and multiple currency conversions. Key participants interpret the situation differently:

  • Orlen's version: Hannon took the money with a commitment to deliver oil but failed to do so; the subsequent fate of the funds is its problem;
  • Hannon's version: It was a technical intermediary, attempting to arrange the delivery and became a victim—$50 million was allegedly stolen by a Dubai counterparty, and around $54 million, it claims, went to fees and efforts to secure the shipment;
  • Poland's prosecutor's position: Accuses former managers of acting to the detriment of the company and inadequate oversight—legally, this is currently a story about corporate control failure rather than proven conspiracy.

It should be noted that USDT remains the primary payment method for sanctioned Venezuelan oil. Analysts estimate that by late 2025 or early 2026, 80% of the country's export revenue will pass through the stablecoin.