A new report from the Global Initiative Against Transnational Organized Crime (GI-TOC) indicates that Tether's USDT stablecoin is now a key payment method in the illicit trade of Amazonian gold into Venezuela. This trend has emerged over the past year as Venezuela has become a regional destination for illegally sourced gold, reversing previous smuggling patterns.
Transnational criminals and Venezuelan officials are reportedly using cryptocurrencies like USDT to circumvent sanctions. The report, based on interviews with gold traders, highlights the growing relevance of stablecoins in global illicit transactions. Experts suggest that while new legislation aims to combat illicit gold mining, its effectiveness hinges on including provisions addressing the role of digital assets in money laundering.
Gold mining has become a significant income source for the Maduro government, fostering loyalty among political and security figures and coordinating with criminal groups operating in the Amazon Basin. The illicit gold trade plays a crucial role in Venezuela's criminal ecosystem, connecting senior political figures, military officials, and transnational criminal organizations.