Stablecoins Have ‘Increasing Relevance’ in Illicit Amazon Gold Trade: GI-TOC
Tether’s USDT stablecoin is being used as a payment method in the illicit trade of Amazonian gold entering Venezuela. According to a Global Initiative Against Transnational Organized Crime (GI-TOC) report, Venezuela has become a regional hub for illegal gold from Brazil and Guyana, reversing earlier trends of gold leaving the country. Over the past two years, new money laundering strategies have emerged, notably the use of stablecoins like USDT by criminals and Venezuelan officials to evade sanctions. Interviews with Guyanese gold traders confirm gold is exchanged for Tether in Venezuela. The report estimates Venezuela’s gold mining generated over $2.2 billion last year, providing a key revenue stream for the Maduro government amid sanctions and declining oil revenues. The illicit gold market links senior political figures, military officials, and transnational criminal groups. The US is considering legislation targeting illicit gold flows, with recommendations to address cryptocurrencies’ role in laundering proceeds from illegal gold transactions, and calls for greater transparency in gold trading.
