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- Venezuelan authorities arrested two individuals for allegedly manipulating the official dollar exchange rate using automated Binance trading.
- Officials claim the operation generated illicit profits by trading USDT at rates up to 58% above the official value.
The Ministry of Interior, Justice and Peace of Venezuela announced the capture of two citizens charged with participating in maneuvers to manipulate the dollar’s value. According to the official report, the detained individuals used the Binance platform and the stablecoin USDT to conduct their operations.
The investigation was handled by the Strategic Operations Group (GOES), a specialized police unit. Investigators maintain that both persons used specialized software with the purpose of intervening in the official auctions conducted by the Central Bank of Venezuela. This intervention allegedly artificially altered the exchange rates within that official mechanism. Venezuelan authorities stated these activities generated profits outside the established legal framework, affecting the stability of the national foreign exchange market.
The identified individuals are José David Silva Moreno and Francisco Rafael Valera Aristimuño. According to GOES reports, they executed between 30 and 80 daily operations. The amounts mobilized in each transaction ranged between 1,000 and 3,000 dollars.
These operations were finalized at exchange rates that reached up to 58% higher than the official dollar rate set by the central bank. These transactions generated million-dollar benefits measured in bolívars each activity day. The official GOES communiqué, published on its Instagram account, describes the network as specializing in the illegal trade of platforms and bank accounts.
Increase in Arrests Related to the Foreign Exchange Market and Crypto Assets
The police procedure allowed for the seizure of several items considered evidence. Among the confiscated objects is a laptop containing the installed automated trading software. Several iPhone phones and other electronic devices were also seized. Authorities indicated these equipments were used to recruit users and execute the purchase and sale operations.
The ministry in charge of the case indicated the accused maintained what they termed “radical political stances.” Their participation in WhatsApp groups where they expressed opinions contrary to the State and incited economic disorder was also mentioned, according to the official version.
The Ministry of Interior stated that this type of activity negatively impacts the value of the bolívar. The ministerial portfolio classified these operations as part of what it calls an “economic war against the Venezuelan State.”
Immediate reactions emerged on social networks like X. One user argued that a dollar still costs one dollar, contending that persecution should not target those speculating with crypto but rather those implementing erroneous monetary, fiscal, and economic policies. Between the months of May and June this year, the Bolivarian National Police (PNB) had already detained more than 50 people for allegedly promoting the parallel dollar through digital portals and operations with cryptocurrencies.
The Minister of Interior, Diosdado Cabello, described these actions as mechanisms with political purposes aimed at chaoticizing the Venezuelan economy. Venezuelan authorities warned they will continue intensifying monitoring of digital platforms and the use of crypto assets in the country. The control strategy extends beyond the traditional banking system, now reaching peer-to-peer crypto asset exchange platforms.
The Perception of USDT as a Digital Dollar and Its Inherent Risks
In the Venezuelan context, many users consider USDT, to be equivalent to the US dollar. This common perception is misleading for several fundamental reasons. USDT does not constitute a physical dollar nor a foreign currency deposit in a traditional bank.
It is a digital asset issued by a private company, Tether Limited, which claims to maintain reserves backing each token in circulation. The value of USDT depends primarily on trust in the issuing company and in the platforms that manage it, such as exchanges, digital wallets, and local intermediaries.
In environments of high economic volatility or severe financial restrictions, as occurs in Venezuela, discrepancies often arise in the exchange price between USDT, US dollars, and bolívars. These differences stem from local supply and demand factors, fees applied by intermediaries, and episodes of illiquidity in the market.
Rafael Arévalo, a user on the X network, stated that when no official supply exists, demand generates its own market. Arévalo described this situation as basic economics, governed by the law of supply and demand. The price of USDT rises because more people are seeking to protect their money from inflation than people willing to sell it.
The use of USDT carries specific technological and regulatory risks. If an exchange platform decides to block funds, if the government imposes direct restrictions on its use, or if Tether faces legal problems affecting its operation, users could lose access to their holdings or suffer an abrupt depreciation in their value.
At the time of the reports’ publication, in the Peer-to-Peer (P2P) section of Binance, various USDT sale advertisements with prices exceeding 305 bolívars were visible. This quotation contrasts markedly with the official dollar price according to the Central Bank of Venezuela, which stood at 214 bolívars.
