Amazon Gold Smuggling Turns to USDT for Payments

TLDR

• A new report links the illegal Amazon gold trade to USDT payments in Venezuela.
• Traders now use USDT to settle cross-border gold deals outside traditional banking systems.
• Researchers found that Venezuela has become a central hub for illicit gold from Brazil and Guyana.
• Criminal networks control mining zones and transport routes across the Amazon region.
• Tether said it cooperates with law enforcement and has frozen $4.2 billion tied to crime.

A new report has identified cryptocurrency payments in illegal gold trades across the Amazon Basin. The Global Initiative Against Transnational Organized Crime found that traders now use USDT to settle cross-border gold deals. The group said this shift links digital assets with illicit commodity flows in Venezuela and neighboring states.

Stablecoins Enter the Amazon Gold Trade

The report states that traders in Venezuela now accept USDT for illegally mined gold. Researchers found that gold from Brazil and Guyana enters Venezuela for resale. They said Venezuela has become a central destination for illicit Amazon gold.

For decades, traffickers moved Venezuelan gold outward to nearby countries. However, researchers now see gold flowing into Venezuela instead. They attribute this reversal to economic decline, sanctions, and falling oil revenue.

Analysts said Venezuela expanded gold mining to offset lost income. They reported that political and military networks control mining zones and transport routes. They added that criminal groups manage cross-border supply chains.

The organization stated that some traders sell Guyanese gold directly for USDT. Researchers said stablecoins offer price stability for commodity payments. They explained that USDT maintains a peg to the U.S. dollar.

Traders favor USDT because it settles transactions within minutes. They also use digital wallets to move funds across borders without banks. Researchers said this system bypasses sanctions and banking restrictions.

The report said USDT converts easily into local currency or other crypto assets. Therefore, traders operating in restricted markets prefer stablecoins. The organization linked these tools to expanding illicit trade networks.

Environmental Damage and Criminal Networks in the Amazon

Illegal mining in the Amazon continues to damage forests and rivers. Operators use destructive extraction methods that increase deforestation. They also release mercury into waterways during gold processing.

Health experts warn that mercury contaminates fish and drinking water. Communities across the Amazon report rising health risks. Authorities link these mining sites to organized crime funding.

Researchers said criminal groups rely on gold revenue to finance operations. They control remote mining areas and transport corridors. The report described a complex network spanning several Amazon countries.

The organization warned that cryptocurrency payments complicate enforcement efforts. It said digital wallets can operate outside traditional financial systems. However, blockchain records still allow transaction tracing.

A Tether spokesperson addressed concerns about the illicit use of USDT. The spokesperson said, “We actively cooperate with law enforcement agencies worldwide.” The company reported freezing about $4.2 billion in assets tied to crime.

Tether stated that public blockchains increase the transparency of transactions. The company argued that authorities can track suspicious wallets. It said it has blocked addresses connected to illegal activity.

The report also referenced tokenized gold products linked to blockchain systems. Tether Gold (XAU₮) represents physical bullion held in reserve. Recent disclosures show over 520,000 fine Troy ounces backing circulating tokens.

The market value of XAU₮ exceeds $2.2 billion at current prices. Each token is equal to at least one fine Troy ounce of gold. These disclosures represent the latest data cited in the report.

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