TLDR
- A new report claims Venezuela may secretly hold up to 600,000 Bitcoin worth around $60 billion.
- The accumulation allegedly began in 2018 through gold swaps and stablecoin oil payments.
- Venezuela reportedly used $2 billion in gold to acquire Bitcoin during peak U.S. sanctions.
- The Maduro regime is accused of converting oil trade proceeds from Tether into Bitcoin.
- U.S. authorities may now seek to seize or freeze these assets following Maduro’s arrest.
Federal prosecutors may soon uncover what could be one of the largest hidden Bitcoin holdings in history, following Nicolás Maduro’s apprehension, and if confirmed, Venezuela’s alleged 600,000 BTC reserve worth over $60 billion, will raise complex legal and financial consequences globally, especially as it could bring nearly 3% of Bitcoin’s supply into question.
Shadow Bitcoin reserve may dwarf official records
Venezuela officially holds 240 Bitcoin, valued at around $22 million, according to Bitcoin Treasuries data.
However, a new Whale Hunt report suggests the real figure could be much higher, estimating a 600,000 BTC reserve.
This hidden holding would place Venezuela among the top global Bitcoin holders, rivaling large corporations and sovereign entities.
The reported accumulation began during heavy US sanctions, using unconventional and off-book financial routes.
Analysts state the Maduro regime exchanged around $2 billion in Orinoco gold for Bitcoin at average prices near $5,000.
If held intact, that alone would now represent a multibillion-dollar position in Bitcoin under Venezuelan state control.
Oil-for-Tether swaps linked to crypto funneling
To avoid international sanctions, Venezuela’s oil industry allegedly shifted to accepting stablecoins, mainly USDT, for crude sales.
The regime reportedly moved those assets into Bitcoin, citing Tether’s susceptibility to US regulatory freezes.
This process formed a protective mechanism to safeguard wealth while bypassing traditional financial systems.
At home, the government took control of the digital asset space, banning mining and eliminating its Petro token in 2024.
These steps aligned with centralizing crypto wealth, according to sources, pushing private players out while consolidating control.
This maneuver mirrored its broader economic strategy of offshoring assets into secure, censorship-resistant instruments.
Legal control of Bitcoin may shift under US custody
With Maduro in federal custody, US authorities could now pursue asset identification tied to the alleged Bitcoin reserve.
Experts say successful asset seizure would remove that supply from circulation, creating what analysts call a “frozen float.”
Such legal limbo could last years due to creditor disputes and ongoing claims against Venezuela’s external debts.
Entities like ConocoPhillips and bondholders could file immediate injunctions to stop US liquidation of the coins.
If locked in legal escrow, the Bitcoins would not re-enter the market for an extended period.
That outcome would restrict supply and likely insulate the assets from short-term price impact concerns.
US authorities face pressure over the reserve’s future, with some advocating to hold the coins as strategic assets.
A move to retain Bitcoin as sovereign wealth could create a new financial precedent.
However, mass liquidation appears unlikely, given the market disruption it would cause by releasing 600,000 BTC.
Forensic investigations underway as court case proceeds
The upcoming trial may bring more information about Venezuela’s alleged secret accumulation through oil and gold swaps.
Authorities will likely prioritize identifying wallet addresses and tracing transaction history linked to the country’s reserves.
Cryptocurrency analytics firms are reportedly supporting efforts to map the flow of Tether and Bitcoin tied to the regime.
Meanwhile, Venezuela’s past reliance on digital assets under sanctions is drawing wider regulatory scrutiny in Washington.
The Department of Justice could investigate stablecoin payment trails used in oil transactions dating back to 2018.
These findings may impact future compliance standards for issuers involved in cross-border token payments.
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