Research published by Whale Hunting suggests that the Venezuelan government may have been able to consolidate one of the world’s largest reserves of Bitcoin (BTC) and digital currencies.
According to the report, the regime of Nicolas Maduro would have systematically converted state revenues into digital assets. The total amount is estimated at US$60 billion.
If these data are confirmed, the Venezuelan state will control over 600,000 Bitcoins. This is a number comparable to the amount held by major institutional investors. These include Strategy (673,000 BTC) and a Bitcoin exchange-traded fund (ETF) issued by BlackRock (770,000 BTC). He will also be competing with Satoshi Nakamoto himself, the founder of Bitcoin (1.1 million BTC).
Whale Hunting is a media outlet dedicated to documenting global financial crime and money laundering networks. Its importance to this investigation lies in its ability to use high-level human intelligence (HUMINT) sources to trace the funds behind some of the world’s most brazen financial crimes and expose the networks of people who enable them.
The origins of reserves: from gold to Bitcoin
Details of the survey are as follows The accumulation of this digital treasure officially began in 2018in the context of international sanctions and economic crisis.
According to Whale Hunting journalists, “the Venezuelan government exported 73.2 tons of gold in 2018 alone, worth about $2.7 billion at the time.” The plan would have consisted of selling the mineral on markets in Turkiye and the United Arab Emirates. and convert that income into digital currency.
The report highlights that temporality was a key factor in this reserve increase. “Venezuela began moving gold in earnest in 2018, when Bitcoin was trading between $3,000 and $10,000,” they emphasized.
“If even a fraction of that amount is exchanged for Bitcoin while the price ranges from $3,000 to $10,000 and remains at the 2021 peak of $69,000, the gains would be staggering,” they noted.
The investigative agency described a “coordinated effort to convert gold proceeds into Bitcoin through Turkiye and OTC brokers in the United Arab Emirates.” This will be used later in the mixer (mixer) and cold wallet (cold wallet) Putting assets beyond the reach of international justice.
Venezuelan Bitcoin seized by US
The size of these holdings has sparked debate among market analysts about the impact of the seizure of these assets by US authorities.
This is in view of the fact that President Nicolas Maduro was detained by the United States in a military operation on January 3, as reported by CriptoNoticias. he was taken to new york He will stand trial on charges of narco-terrorism offenses and weapons possession.. On Monday, January 5th, it was revealed that the president had pleaded not guilty to all charges against him.
According to data from analysts at research institutions such as Serenity, it is highly likely that their arrest resulted in the leakage of BTC controlled by the Maduro regime. “And immediately becomes embroiled in complex litigation.”
“Creditors will file court orders and the Department of Justice will seek forfeiture. Additionally, the wallet’s private keys are in the custody of the U.S. Treasury, but the coins cannot be moved,” they explain.
Analysts at Serinity note that the seizure of 600,000 BTC will cause fluctuations in digital currency prices in the short term. This is due to political uncertainty; That would lead to a bullish narrative arising from a “supply shock.”
“The market will realize that 600,000 BTC (3% of circulating supply) will be effectively removed from the market over 5-10 years,” he said. “This will act as a huge ‘lock-in’, reducing liquidity supply and supporting price appreciation.”
Similarly, Serenity believes the US Bitcoin Strategic Reserve story will gain momentum. They believe that US President Donald Trump may order over 600,000 BTC from Venezuela. Becomes part of the U.S. Treasury. “This also acts as a large block, reducing liquidity supply and keeping prices rising,” they point out.
Uncertainty regarding access to private keys
Despite the astronomical numbers, Whale Hunting warns that full control of these funds depends on the person holding the private keys.
With key figures in the scheme in custody or missing, researchers say this raises questions about whether this capital can be recovered or whether it will “disappear into the blockchain, accessible only to those with the keys.”
“The question is no longer whether the regime can survive, but whether the stolen property can be recovered or disappear on the blockchain,” the journalist concludes.
While the market absorbs that potential, Venezuela becomes a “Bitcoin superpower”the shortage of major digital assets appears to be reinforced by the prospect of an impending long-term blockade of digital currencies that might otherwise have been liquidated.
