Maduro critics say Venezuelan president will use crypto to evade sanctions

Maduro critics allege that the Venezuelan president will turn to cryptocurrency transactions as a means to evade international sanctions imposed on his government. This comes after Maduro failed to honor an election agreement, resulting in the US reinstating gold and oil sanctions. Similar concerns were raised by members of the US Congress in 2022 regarding sanctioned parties in Russia using cryptocurrencies for fund transfers. Blockchain analysis conducted by Chainalysis on SUNACRIP, a crypto oversight body in Venezuela, revealed substantial token transfers across multiple accounts, potentially controlled by SUNACRIP or its affiliates. These transactions exceeded $70 million in stablecoins. The US Department of State spokesperson stated earlier this year that Maduro’s team had not fulfilled their electoral roadmap agreement, which led to the expiration of General License 44. This replacement license allowed companies 45 days to phase out their operations and transactions in Venezuela’s oil and gas sector. The sanctions pose significant challenges for the Venezuelan government, which previously attempted to bypass US sanctions through the Petro cryptocurrency. Political observers believe that Maduro faces a dilemma, as polls indicate a potential defeat, which would require him to negotiate a transfer of power or manipulate or annul the election results.