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Following the capture of former Venezuelan President Nicolás Maduro, the cryptocurrency world has been buzzing with a sensational rumor: does the Venezuelan regime actually possess a secret hoard of Bitcoin worth $60 billion? While headlines and speculative reports suggest the sanctioned nation might be sitting on one of the largest state-owned crypto treasuries in the world, the reality on the ground paints a starkly different picture—one of kleptocracy, missed opportunities, and a population using digital assets simply to survive.
In a recent discussion on Unchained, Mauricio Di Bartolomeo, co-founder of Ledn, and Jorge Jraissati, president of the Economic Inclusion Group, dissected the validity of these rumors. Beyond the speculation of a hidden fortune, they revealed the harrowing history of Bitcoin mining in Venezuela, the failure of the state-backed "Petro," and how stablecoins have become the true financial lifeline for millions of citizens.
Key Takeaways
- The $60 billion myth: Experts argue the rumored Bitcoin stockpile likely does not exist in state reserves due to rampant corruption and theft by individual regime officials.
- Corruption over accumulation: While Venezuela did trade oil for crypto, investigations suggest proceeds were siphoned off by corrupt regulators rather than accruing to the national treasury.
- The war on miners: The "Golden Age" of independent mining (2015–2017) ended when the regime launched a witch hunt to confiscate equipment for the benefit of private cronies.
- Stablecoins as survival tools: Due to a destroyed banking system and massive exchange rate manipulation, everyday Venezuelans rely on USDT for basic transactions and remittances.
- Rebuilding via crypto: The true value in Venezuela lies not in a hidden stash, but in the potential to rebuild the nation’s financial infrastructure using blockchain technology post-transition.
Deconstructing the $60 Billion Rumor
The speculation that Venezuela holds tens of billions in Bitcoin stems from the country's exclusion from the global financial system and its known history of using cryptocurrency to bypass sanctions. However, Di Bartolomeo argues that this theory collapses under scrutiny when you understand the mechanics of the Maduro regime's corruption.
The Alex Saab Connection
One primary source of the rumor involves Alex Saab, a key financial operator for the regime who was allegedly involved in swapping gold and oil for Bitcoin. The theory posits that Saab managed billions in crypto assets before his arrest.
However, the timeline of his prisoner swap raises questions. Saab was released back to Venezuela by the Biden administration in late 2023. If he indeed controlled access to $20 billion or more in Bitcoin, handing him back to an unfriendly regime would have been a strategic blunder of massive proportions. Furthermore, at the time of his release, Venezuela’s central bank reported reserves of under $10 billion. Di Bartolomeo notes that it is highly implausible that a single operative controlled double the amount of the entire central bank's reported reserves.
The "Oil for Crypto" Reality
It is a documented fact that Venezuela sold oil for cryptocurrency. However, the assumption that these funds made it back to the state treasury ignores the institutional rot within the state-owned oil company, PDVSA, and the crypto regulator, Sunacrip.
In March 2023, a massive corruption scandal exploded, revealing that officials had embezzled approximately $17.6 billion through fraudulent oil sales over just three years. The regulator responsible for overseeing these transactions was shut down, and its officials prosecuted.
"I’m not disputing whether Venezuela sold oil for crypto. What I find very hard to believe is that any of the crypto that was paid for that oil was rightfully returned back to PDVSA and sent back to the Venezuelan reserves for the Venezuelan people."
The evidence suggests that while crypto flowed into the hands of regime insiders, it was systematically siphoned into private pockets rather than state wallets.
The Rise and Fall of Venezuelan Bitcoin Mining
Before the government crackdown, Venezuela experienced a grassroots Bitcoin mining boom. Between 2014 and 2017, hyperinflation destroyed the local currency, driving desperate citizens to find alternative sources of income. With electricity heavily subsidized, mining Bitcoin became a lifeline for many.
The Golden Age of Independent Mining
For everyday Venezuelans, mining wasn't just about profit; it was about accessing "freedom money." Families repurposed industrial spaces and booted up old computers to mine via GPUs. It was a period of relative prosperity for those who participated, providing a hedge against an economy in freefall.
Di Bartolomeo recounts his own family's experience during this era, noting that the tangible nature of mining hardware helped bridge the gap for older generations skeptical of digital assets. For a brief window, Bitcoin represented hope and financial sovereignty.
The 2018 Crackdown and Confiscation
The landscape shifted dramatically in late 2017. As Bitcoin rallied to $20,000 and the Maduro regime faced tightening sanctions, the government turned its eyes toward the mining sector. Under the guise of a national registry and educational "roadshows," the government gathered intelligence on where mining operations were located.
What followed was a brutal witch hunt. Officials, often acting as privateer "death squads" for the regime, raided homes and facilities. They extorted miners for cash and seized equipment. According to Di Bartolomeo, this stolen hardware wasn't used to build a state mining farm for the public good; it was operated off the books to enrich the specific cronies who seized it.
The Petro: A Failed State Experiment
Coinciding with the crackdown on private miners was the launch of the "Petro" in 2018—a state-issued cryptocurrency allegedly backed by oil reserves. The project was widely criticized by international economists and the crypto community alike as a scam.
The official whitepaper claimed the token was backed by oil, gold, and diamonds, but crucially included a clause stating it could be backed by "anything else the Venezuelan government deems worthy." Without trust or decentralization, the token failed to gain adoption even among Venezuelans, who immediately dumped any Petros forced upon them for hard currency.
By 2024, the Petro was officially sunsetted, a quiet admission of failure for a project that was supposed to save the nation’s economy. The irony remains that the very regulators tasked with managing the Petro were the ones implicated in the multi-billion dollar embezzlement of oil revenues.
Stablecoins: The Real Crypto Economy
While the regime failed to institutionalize crypto, the Venezuelan people succeeded in adopting it out of necessity. Today, stablecoins (particularly USDT) play a critical role in the daily economic life of the country.
Navigating Exchange Rate Manipulation
The primary driver for stablecoin adoption is the massive disparity between the official exchange rate and the free market rate. The government artificially pegs the Bolivar at a rate significantly stronger than its real value.
The mechanics of the disparity are stark:
- Official Rate: A regulated bank transfer might value $1 at roughly 321 Bolivars.
- Free Market Rate: A peer-to-peer stablecoin transaction might value $1 at 780 Bolivars.
Using traditional banking rails effectively halves a citizen's purchasing power. Consequently, remittances and commerce have migrated to crypto rails, where individuals can preserve the true value of their money. Jraissati notes that in cities like Barquisimeto, a significant percentage of businesses accept stablecoins directly to bypass the broken banking sector.
The Future: Rebuilding Venezuela on Chain
Both Di Bartolomeo and Jraissati argue that the fixation on a mythical $60 billion treasury distracts from the massive opportunity lying in wait. Venezuela possesses the raw ingredients to become a legitimate crypto powerhouse in a post-transition era.
Energy and Infrastructure
Venezuela remains an energy hub with vast hydroelectric potential. Under a transparent and democratic government, this energy could power a competitive, legal Bitcoin mining industry. This would not only monetize excess energy production but also attract foreign investment to upgrade the dilapidated electrical grid.
Financial Reconstruction
The destruction of the traditional financial system presents a "clean slate" opportunity. With trust in local banks at an all-time low and crypto literacy at an all-time high, Venezuela is uniquely positioned to leapfrog legacy banking systems.
"Venezuela will become a huge opportunity for everybody who is involved in the crypto asset sector. The Venezuelan financial system is totally destroyed. It needs total rebuilding. And what better than to rebuild the Venezuelan economy through the power of crypto assets, Bitcoin, and stablecoins."
A reconstruction plan could integrate stablecoins as a formal part of the economy, offering citizens the financial inclusion and privacy they have been denied for decades.
Conclusion
The rumors of a $60 billion Bitcoin fortune in Venezuela appear to be a mirage—a projection of what could have been if the regime had operated with competence rather than kleptocracy. The evidence points to stolen funds, seized assets, and squandered resources.
However, the real story of crypto in Venezuela is one of resilience. It is the story of everyday people using technology to circumvent authoritarian control, preserve their wealth, and keep commerce alive. As the geopolitical situation evolves, the digital assets sector may prove to be the most vital tool in rebuilding the nation’s future.
