Crypto Trading in Venezuela Primarily Used by People Close to Maduro Regime
Main page News, Venezuela, Crypto Market, Money Laundering, Cryptocurrency
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Aug. 27, 2020

Chainalysis, a blockchain analysis company, has issued a new report called "Hyperinflation and Sanctions Evasion: What On-Chain Data Tells Us About Venezuelans' Trust in Cryptocurrency," in which described how individuals close to the Maduro regime launder money via peer-to-peer (p2p) crypto trading platforms.

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Venezuela is known as one of the most active countries in terms of p2p crypto volume. Currently, Venezuela ranks third place in p2p trading volume in USD, after the US and Russia.

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However, almost 80% of transfer volume on the Venezuelan Criptolago exchange is moved in transactions of $1,000 USD or more in cryptocurrencies, Chainalysis highlights.

Crypto Trading in Venezuela Primarily Used by People Close to Maduro Regime

It is important because the average Venezuelan earns approximately 70 cents per day. Hence, Chainalysis points out, Criptolago’s transaction activity is allegedly driven "by people connected to the Maduro regime seeking to launder funds or move them out of Venezuela."

Meanwhile, cryptocurrency remains to be hugely helpful tool, as immigrants can use it to send funds overseas faster and with lower fees than they can with fiat.

"Cryptocurrency also enables them to do this without a bank account, which is difficult to obtain for many Venezuelans," Chainalysis added.

In March, the US Department of Justice accused Venezuelan president Nicolás Maduro Moros with the other 14 Venezuelan Officials of hiding criminal activity behind cryptocurrencies.

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Maduro is accused of a narco-terrorism partnership with the FARC for the past 20 years, according to U.S. Attorney Geoffrey S. Berman.

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