Stablecoins Fueling Illicit Gold Trade in Venezuela, Report Finds

GENEVA (Azat TV) – Stablecoins, particularly Tether’s USDT, are increasingly being utilized in the illicit trade of gold into Venezuela, according to a new report by the Global Initiative Against Transnational Organized Crime (GI-TOC). The Geneva-based organization’s findings indicate a significant shift in illicit gold flows within the Amazon region, with Venezuela emerging as a primary destination over the past two years.

Stablecoins’ Growing Role in Illicit Gold Transactions

The GI-TOC report, titled “Shifting Amazon Gold Flows,” details how Venezuela has reversed previous trends, now receiving illegally traded Amazonian gold instead of exporting it. This resurgence in illicit gold entering the country is accompanied by the adoption of new money laundering techniques, including the use of cryptocurrencies. These digital assets enable transnational criminals and Venezuelan officials to bypass international sanctions.

Researchers based their conclusions on interviews with two gold traders in Georgetown, Guyana. The report states that some gold originating from Guyana is reportedly sold in Venezuela in exchange for Tether. Marcena Hunter, Head of Extractives at GI-TOC and co-author of the report, confirmed to Decrypt that illicit gold traders have been using USDT for approximately the last year. “This highlights the increasing relevance of stablecoins in global illicit transactions alongside broader concerns about crypto and organised crime,” Hunter said, adding, “Given the increased licit and illicit interaction around stablecoins we expect this trend to develop.”

Venezuela’s Economy and the Illicit Gold Trade

The report underscores the economic significance of illicit gold mining in Venezuela, which generated over $2.2 billion in revenue last year. This trade has become a critical income source for the Maduro government, particularly as mismanagement and sanctions have depleted oil revenues. The GI-TOC research suggests that the Venezuelan government has leveraged the illicit gold trade to foster loyalty among politicians and security forces. Elements within the government have also reportedly coordinated with criminal groups that have established a growing presence in the Amazon Basin.

“Within Venezuela’s criminal ecosystem, the illicit gold trade plays an influential role, binding together senior political figures, military officials and transnational criminal groups,” the report states. This complex web highlights how the trade is deeply integrated into the nation’s governance and criminal structures.

Combating Illicit Gold Mining and Financial Flows

In response to such illicit activities, the United States is considering the Legal Gold and Mining Partnership Act, which has advanced to the Senate Committee on Foreign Relations. This proposed legislation aims to mitigate the environmental and social repercussions of illicit gold mining in the Western Hemisphere.

According to the draft bill, the strategy would involve combating and disrupting the financing and financial flows associated with illicit actors involved in gold mining and trading. This legislative effort reflects a growing international concern over the use of financial tools, including cryptocurrencies, to facilitate illegal resource extraction and organized crime.

A spokesperson for Tether emphasized the company’s cooperation with law enforcement agencies worldwide, noting that approximately $4.3 billion in assets linked to illicit activities have been frozen. This statement comes amid increasing scrutiny of stablecoins’ role in illicit finance.

The growing reliance on stablecoins like USDT in illicit trade routes demonstrates the evolving methods of transnational criminal organizations in circumventing financial controls and sanctions, posing a significant challenge for global anti-crime efforts.