Maduro Defies US: Venezuela Doubles Down on Crypto to Bypass Sanctions

According to dissidents and cryptocurrency analysts, Venezuela is expected to continue leveraging cryptocurrency to circumvent the latest US sanctions imposed last month.

The Nicolas Maduro administration may use cryptocurrency to mitigate the impact of renewed sanctions  on oil and gold, as it has done previously.

Venezuela Uses Crypto to Dodge US Sanctions Amid Corruption Scandal

The Biden administration reinstated the sanctions , accusing Maduro of failing to honor agreements intended to ensure a fair environment for the upcoming presidential election on July 28.

Andrew Fierman, head of national security intelligence at Chainalysis, a blockchain security firm, confirmed  that crypto has been used before, combined with a wide array of methods over the years. He stated that when discussing regimes subject to sanctions, they typically explore a variety of ways to evade those sanctions.

He said :

“When you’re talking about regimes that are subject to sanctions, they’re typically going to look for a variety of ways to evade those sanctions. The Venezuelan government and the Maduro regime have been doing this across a wide array of methods over the years.”

Venezuelan authorities halted activities in the cryptocurrency industry, including Bitcoin mining, due to a multi-billion dollar corruption case involving cryptocurrency and oil sales.

Despite the involvement of the cryptocurrency watchdog agency SUNACRIP, its former head Joselit Ramirez, and other high-ranking ministers in the scandal, cryptocurrency continues to be a primary tool in these operations. This information is highlighted in the “Crypto in Venezuela: Two Sides of a Coin ” report issued by the Woodrow Wilson International Center in April.

López and Doucette wrote :

“Every dollar misappropriated by the Maduro regime rightfully belongs to the Venezuelan people. 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.”

$70M in Crypto Moved by Venezuelan Regulator Amid Sanctions Probe

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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