Maduro was "blitzed" by the United States. Where will Venezuela's "legendary $60 billion worth of Bitcoin" go?

Author: Ye Huiwen

Source: Wall Street Journal

As the political situation in Venezuela experienced a dramatic turnaround within hours, global attention is rapidly shifting from geopolitical tremors to an unprecedented financial maze: what fate awaits the massive cryptocurrency “shadow reserves” built to evade long-term sanctions.

According to CCTV News, on January 3rd local time, the United States launched a large-scale military operation against Venezuela. Venezuelan President Maduro and his wife have been captured by the U.S. and taken out of the country. President Trump confirmed this action at Mar-a-Lago, stating that the U.S. will “manage” Venezuela until a secure transition is achieved, and revealed that major American oil companies will enter the country, investing billions of dollars to repair infrastructure.

Beyond physical assets, the destination of a huge digital asset believed to have been accumulated through “gold swaps” and oil trade remains a mystery. Media outlets such as Whale Hunting, citing informed sources, report that Venezuela has established a complex shadow financial network to evade sanctions, converting national resources including gold and oil into Bitcoin and Tether (USDT).

As the core circle of Maduro’s government disintegrates, who holds the “private key” to unlock this digital wealth has become one of Washington’s most concerned issues.

Estimates from some sources suggest this figure could be as high as $60 billion. This massive sum is believed to have been accumulated over years through complex channels such as gold swaps and oil trade. With regime change, the key figures controlling this wealth’s “private key” have become focal points, with Alex Saab, regarded as the “architect” of this system, being particularly critical. The fate of these assets has shifted from a financial technology issue to a complex game involving intelligence, law, and geopolitics.

Digital Assets of the Shadow Financial Empire

According to Whale Hunting citing HUMINT (human intelligence) sources, the Venezuelan government may control Bitcoin valued at up to $60 billion. Although this data has not been fully confirmed by on-chain blockchain analysis, the underlying reasoning has attracted the attention of financial intelligence circles.

The report states that this fund accumulation began in 2018. At that time, Venezuela exported 73.2 tons of gold, worth approximately $2.7 billion. Sources told media that if part of this capital was converted into Bitcoin when prices were between $3,000 and $10,000, and held until the 2021 high of $69,000, the appreciation would be astonishing.

If this estimate is accurate, the scale of this asset could rival MicroStrategy’s holdings or even surpass El Salvador’s national reserves.

In addition to Bitcoin, stablecoins also play an important role in the country’s capital flow. According to ZeroHedge, as sanctions tighten, Venezuela’s state oil company PDVSA has begun requiring intermediaries to settle oil transactions using Tether (USDT). By December 2025, approximately 80% of the country’s oil revenue is reportedly received in USDT. Although Tether has frozen some related wallets, this may only be the tip of the iceberg.

Gold Swap and Crypto Channels

To achieve covert asset transfer, relevant parties have built a complex channel spanning Turkey, the UAE, and other regions.

Sources familiar with the operation describe that this process usually begins with Venezuela’s gold mining and export. Gold is transported to Turkey and the UAE for refining and sale. The proceeds are not directly repatriated but are converted into cryptocurrencies through OTC brokers. Subsequently, these funds are processed through “mixers” to obscure their origin and finally stored in cold wallets.

In this process, certain individuals play key roles. Media mention a person named David Nicolas Rubio Gonzalez, who is said to serve as a courier responsible for coordinating the physical transportation of gold. Although he was sanctioned by the U.S. Treasury as early as 2019, he has not faced criminal charges, prompting speculation about whether he has reached some form of cooperation with the U.S. side. Insiders believe that intermediaries who control detailed fund flows may know the ultimate destination of this massive wealth.

Role of Key Figure Alex Saab

In this financial architecture, Alex Saab is widely regarded as a core figure. According to Bloomberg, Alex Saab was appointed by Maduro as head of the Venezuelan International Investment Center in January 2024. From Washington’s perspective, he is the “architect” behind this shadow financial system.

Previously disclosed court documents show that Alex Saab has a complex relationship with U.S. law enforcement; he has been an informant for the DEA since 2016. With Maduro’s arrest, Alex Saab has again become a focus of attention. Former Venezuelan prosecutor Zair Mundaray told media that Saab, unbound by traditional political factions, gained trust and effectively acted as a “guarantor” of assets.

The current suspense is that the control of these cold wallet private keys may not belong to a single individual. Sources reveal that a multi-signature mechanism designed by Swiss lawyers might be in place, dispersing the keys among trusted individuals in different jurisdictions to ensure asset security. Whether these encrypted assets will remain permanently sealed like many “sleeping” Bitcoin whale addresses or be recovered by the U.S. through legal and intelligence means remains uncertain.

Market Reactions to Oil and Gold

Returning to traditional financial markets, investors are assessing the economic impact of the U.S. “taking over” Venezuela.

Phil Flynn, senior market analyst at Price Futures Group, pointed out that despite Venezuela’s staggering proven oil reserves of 3,030 billion barrels, its actual daily production has shrunk to about 1 million barrels, accounting for only 0.8% of global output. Therefore, even if there is a short-term supply disruption, its direct impact on global oil prices is limited. Flynn believes the market’s reaction is more psychological, and Venezuela’s oil share can be easily replaced by other producing countries.

Regarding gold, Venezuela’s 2024 gold production is about 31 tons, which is not prominent globally. Analysts suggest that in the short term, the dust from military actions may limit gold’s safe-haven rally; however, if subsequent U.S. military intervention in the region triggers broader geopolitical conflicts, it could provide medium-term support for gold prices.