As a researcher with extensive experience in international politics and economic sanctions, I am deeply concerned about the increasing use of cryptocurrencies by the Venezuelan government, led by President Nicolás Maduro, to evade international sanctions. The situation has worsened following the U.S.’s recent reinstatement of gold and oil sanctions due to Maduro’s failure to honor electoral commitments.
Critics and activists in Venezuela have expressed concern that President Nicolas Maduro and his administration may be using cryptocurrencies for clandestine financial dealings in order to bypass international sanctions.
After the United States restored gold and oil sanctions, due to Maduro’s refusal to uphold a deal guaranteeing fair July elections.
Critics Urge for Stricter Sanctions
Over the past twenty years, the United States has implemented targeted sanctions against Venezuela in an attempt to push for democratic changes within the government. Yet, Andrew Fierman, who heads national security intelligence at Chainalysis Inc., warns that regimes under sanctions, including Maduro’s, frequently discover creative ways to bypass such limitations.
According to the electoral accord, Nicolas Maduro and his delegates have failed to fully comply with their obligations. Consequently, General License 44, which facilitates financial transactions involving Venezuela’s oil and gas sector, will no longer be extended beyond its expiration date at midnight.
— Matthew Miller (@StateDeptSpox) April 17, 2024
As a researcher studying regimes under sanctions, I’ve observed that they often seek creative methods to bypass these economic restrictions. The Venezuelan government, specifically the Maduro regime, has employed various evasion tactics throughout the years.
As a researcher, I’ve come across a noteworthy finding detailed in a report produced by the Woodrow Wilson International Center for Scholars. The authors, Leopoldo López from Venezuela and Kristofer Doucette, the director of Intel Solutions at Chainalysis, bring attention to potential weaknesses in the recently implemented sanctions. These vulnerabilities surface notably within the context of the Maduro regime’s stated intentions to employ cryptocurrency projects as a means of circumventing international restrictions.
In their report, López and Doucette highlight the financial consequences of the Maduro government’s suspected cryptocurrency deceit. They asserted that every single dollar missused by the Maduro administration actually belongs to the citizens of Venezuela.
As a researcher examining the economic situation in the country, I find it astounding that billions of dollars have gone missing in recent years. This immense sum could have been a game-changer, potentially revitalizing our economy and lifting many of its citizens out of poverty. Regrettably, President Maduro’s decision to adopt cryptocurrency has taken an alternative route, exploiting this emerging technology to siphon off the nation’s wealth even further. This unfortunate turn of events only exacerbates the hardships faced by our people.
The US and EU are urged to impose stricter and wider-ranging sanctions against Venezuela, while encouraging other countries to probe into the Venezuelan administration’s alleged use of cryptocurrencies for bypassing restrictions.
Chainalysis Uncovers $70 Million in Stablecoin Transfers
Through in-depth examination of blockchain data by Chainalysis, it was uncovered that Venezuela’s National Superintendence of Crypto Assets and Related Activities, SUNACRIP, had been moving substantial amounts of tokens between multiple accounts on various cryptocurrency exchanges.
According to Chainalysis’ analysis, approximately $70 million worth of stablecoins have passed through accounts believed to be linked to SUNACRIP or its associates. This activity has helped ensure seamless financial transactions, notwithstanding any existing sanctions.
In 2018, the Venezuelan government introduced the Petro, a cryptocurrency backed by the nation’s oil and mineral reserves, to combat hyperinflation and avoid U.S. sanctions. Despite mandates for its use, the token saw limited practical adoption. In January, the government suspended the Petro amid a corruption investigation involving misappropriated payments intended for the state-run oil company, Petróleos de Venezuela SA.
Read More
- W PREDICTION. W cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- ZETA PREDICTION. ZETA cryptocurrency
- AEVO PREDICTION. AEVO cryptocurrency
- FutureNet Co-Founder Roman Ziemian Arrested in Montenegro Over $21M Theft
- JGN PREDICTION. JGN cryptocurrency
- EUR JPY PREDICTION
- ETH CAD PREDICTION. ETH cryptocurrency
- USD JPY PREDICTION
2024-06-18 01:22