In 2023, the Polish company Orleen attempted to purchase Venezuelan oil through intermediaries, including the firm Hannon and the UK-based Lexcor Energy. To facilitate the deal, Hannon converted $245 million into USDT via various Dubai-based entities, adding $15 million of its own funds to the transaction.
The procurement process faced significant complications, including missing funds during currency exchanges and mounting demurrage fees for three Polish tankers anchored in Venezuela. Hannon representatives, including Kam Tse, traveled to Venezuela carrying USDT stored on USB cold wallets to finalize the deal with local brokers.
During the trip, Hannon representatives transferred 60 million USDT and subsequently another 50 million USDT to individuals claiming to represent the energy firm Synergy. These representatives disappeared, and the promised oil shipments failed to materialize as expected, leading to substantial financial losses.
The operation involved further attempts to acquire fuel oil, resulting in partial deliveries and additional payments to a firm called Consulting Services. Ultimately, the Polish government investigation estimated the total losses and expenditures related to the failed venture at $424 million.
The case highlights challenges in verifying cryptocurrency wallet ownership, as the entities involved lacked KYC documentation. Legal proceedings in Dubai regarding the initial currency exchanges are complicated by the difficulty of proving the ownership of the wallets used in the transactions.
