A new report from the Global Initiative Against Transnational Organized Crime (GI-TOC) has exposed the increasing use of the Tether (USDT) stablecoin to facilitate the illicit trade of Amazonian gold into Venezuela. The report, titled "Shifting Amazon Gold Flows," details how Venezuela has emerged as a regional destination for illegally mined gold from Brazil and Guyana over the past two years, reversing previous smuggling patterns.
The research, based on interviews with gold traders, indicates that some gold from Guyana is sold in Venezuela in exchange for USDT. Marcena Hunter, Head of Extractives at GI-TOC and a co-author, stated that this use of USDT by illicit gold traders has been observed within the last year, highlighting the "increasing relevance of stablecoins in global illicit transactions."
The illicit gold trade is a major revenue source for Venezuela, generating over $2.2 billion last year and providing the Maduro government with a key income stream amid declining oil revenues. The GI-TOC report states the trade binds together senior political figures, military officials, and transnational criminal groups within Venezuela's criminal ecosystem.
In response to the findings, a Tether spokesperson pointed to the company's work with law enforcement, including the freezing of approximately $4.3 billion in assets linked to illicit activity. Meanwhile, experts note that a bill currently before the U.S. Congress, the United States Legal Gold and Mining Partnership Act, could help combat the issue. Hunter emphasized that for the bill to be effective, it must include provisions related to cryptocurrency, given its growing role in laundering the proceeds from illicit gold.
