Maduro's fall exposes "secret vault"! Where will Venezuela's "600,000 Bitcoins" go?

U.S. President Donald Trump recently ordered the arrest of Venezuelan President Nicolás Maduro, bringing to light the long-rumored “Bitcoin secret vault” of this South American country. Intelligence indicates that Maduro’s regime has secretly operated for years to establish a “shadow reserve” of between 600,000 and 660,000 Bitcoins, valued at approximately $60 billion to $67 billion.

This astonishing discovery not only elevates Venezuela to one of the top Bitcoin holders globally but also positions its holdings to rival giants like BlackRock and Strategy. The fate of this hidden treasure is likely to influence Bitcoin’s supply-demand dynamics and market sentiment.

According to sources cited in Whale Hunting, Venezuela’s “National-Level Coin Hoarding Plan” began in 2018, primarily through methods such as “gold-for-coin exchanges,” “settling oil exports in USDT,” and “sweeping domestic mining farms” to accumulate Bitcoin.

Gold-for-Bitcoin (2018–2020): It is reported that Venezuela exported dozens of tons of gold from the Orinoco Mining Arc, converting about $2 billion of the proceeds into Bitcoin at an average price of $5,000 per Bitcoin. The market value of these holdings has now expanded to approximately $36 billion.

Settling Oil Exports in USDT (2023–2025): After the failure of the Petro cryptocurrency issued by Venezuela, Maduro’s regime shifted to requiring state oil company PDVSA to settle crude oil export payments in USDT. To avoid account freezes and reduce dollar exposure, these stablecoins were subsequently “washed” and converted into Bitcoin.

Combined with confiscations of domestic illegal mining operations, the total Bitcoin holdings in Venezuela are estimated to exceed 600,000 coins, accounting for about 3% of the current circulating supply.

The scale of Venezuela’s “shadow vault” is hard to ignore. In 2024 alone, Germany’s sale of 50,000 Bitcoins (worth about $3 billion at the time) triggered a market correction of 15% to 20%.

How the U.S. will handle these assets has now become a market focus. Sources suggest three main possibilities:

1. Frozen due to legal proceedings;
2. Incorporated into the U.S. Bitcoin strategic reserve;
3. Auctioned off (less likely).

Most analysts believe the first two scenarios are the most feasible. Whether frozen or nationalized, these Bitcoins are unlikely to enter the market within the next 5 to 10 years, effectively locking up supply. For large holders like Strategy and other institutions, this could be a bullish narrative.

Venezuela’s reliance on Bitcoin extends beyond government levels into the civilian population. Under severe inflation, U.S. sanctions, and the collapse of the Bolivar currency, cryptocurrencies have become a widely used tool among the people.

By the end of 2025, approximately 10% of household payments and nearly 40% of peer-to-peer transfers in Venezuela are expected to be conducted using cryptocurrencies; stablecoin remittances account for about 10% of overseas capital inflows.

According to Chainalysis, Venezuela ranks 17th globally in cryptocurrency adoption, among the top in Latin America.

With Maduro’s fall, a pro-U.S. transitional government may introduce policy shifts, including easing mining restrictions or promoting cryptocurrency legalization. However, until the private keys are surrendered and legal ownership clarified, these 600,000 Bitcoins remain effectively “locked.”