Maduro will use crypto to evade sanctions, critics warn

Venezuelan political critics and activists have claimed that President Nicolás Maduro and his government are looking for ways to bypass international sanctions, with crypto transactions being one of the methods they plan to use.

Maduro has failed to comply with the agreement for free and fair elections scheduled for July. The dispute led the United States to reimpose gold and oil sanctions it had imposed on some members of the Venezuelan government in late May.

Andrew Fierman, head of national security at Chainalytics, told Bloomberg that some sanctioned regimes are trying to evade them with crypto.

Members of the US Congress have expressed similar concerns about whether sanctioned parties will use cryptocurrency to transfer funds from Russia in 2022. Bills were later introduced to prevent this, according to the Congressional Research Service.

Chainalytics conducted a blockchain analysis of SUNACRIP, a crypto oversight body established by the local government in Venezuela in 2018.

Data shows that SUNACRIP (Superintendencia de Criptoactivos y Actividades Conexas de Venezuela) frequently transfers significant amounts of tokens to multiple accounts on different cryptocurrency platforms.

According to the blockchain data company’s findings, these transactions were linked to various addresses potentially controlled by SUNACRIP or controlled by individuals closely associated with it. The total amount processed in various stablecoins exceeded $70 million.

Maduro is not committed to fair elections

Earlier this year, US State Department spokesman Matthew Miller shared his belief that Maduro and his team are not committed to maintaining the election road map agreement.

Nicolas Maduro and his representatives have not fully fulfilled the commitments made under the election road map agreement. Therefore, General License 44, which allows transactions related to the oil and gas sector with Venezuela, will expire after midnight and will not be renewed.

— Matthew Miller (@StateDeptSpox) April 17, 2024

Following the sentiment, the US Treasury Department issued a replacement license giving companies 45 days to phase out their activities and operations in the OPEC member state’s oil and gas sector.

The sanctions could have dire consequences for the Venezuelan government, which had previously sought to circumvent US sanctions by creating a cryptocurrency called Petro in 2018.

The government banned the use of the token following an investigation into a major corruption case. Crypto wallets have reportedly been used to route payments destined for state-run oil company Petróleos de Venezuela SA, which analysts believe President Maduro could imitate.

Political observers believe Maduro faces a clear dilemma: If he loses in the elections, as most opinion polls indicate, he can either concede defeat and engage in negotiations for the transfer of power with protection from legal persecution, or he can choose to manipulate or revoke power. Selection results.