Venezuelan Explains How Bitcoin Saves His Family

As the situation in Venezuela intensifies, a local bitcoin user details how he and his family use the cryptocurrency to survive the country’s ongoing crisis. Keeping all of his money in bitcoin, he only exchanges small amounts into the hyper-inflating bolivar when necessary. Venezuelan Explains How Bitcoin Saves His Family

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Venezuela’s Bitcoin Holdings Could Be As High As $60 Billion!

Venezuela is believed to have accumulated a significant amount of Bitcoin, potentially worth billions of dollars, although the exact amount and storage locations remain unverified.

Estimates suggest that the country could hold around 600,000 Bitcoin, but blockchain analysis shows only a modest footprint connected to state-affiliated wallets.

Confirmed Holdings

Venezuela is officially reported to hold 240 Bitcoin, valued at approximately $22 million. This figure has been tracked since December 31, 2022.

Speculated Holdings

Analysts speculate that Venezuela may possess a much larger reserve, potentially between 600,000 and 660,000 Bitcoin. This would be valued at approximately $56 billion to $67 billion at current prices.

However, this estimate lacks concrete evidence and relies on indirect sources.

Background On Accumulation

The Venezuelan government has been converting assets into Bitcoin since around 2018, often using proceeds from gold sales and oil transactions priced in stablecoins like Tether (USDT).

This strategy was likely adopted to navigate international sanctions and financial isolation.

Challenges In Verification

The exact amount of Bitcoin held by Venezuela remains unclear due to the decentralized nature of cryptocurrency and the use of various wallets.

Blockchain analysis has not confirmed the larger claims of Bitcoin holdings, and many transactions are obscured, making it difficult to trace ownership.

Implications

If the larger estimates are accurate, Venezuela’s Bitcoin holdings could significantly impact global financial markets, especially if subjected to legal actions or seizures by the U.S. government.

Role of Bitcoin In Supporting Citizens Of Sanctioned Countries

Bitcoin can provide a means for citizens in sanctioned countries to bypass financial restrictions and access funds, as it operates outside traditional banking systems.

This allows individuals to receive remittances and conduct transactions without government oversight, offering a form of financial freedom in restrictive environments.

Financial Freedom and Evasion of Restrictions

Bitcoin serves as a crucial financial tool for citizens in countries facing heavy sanctions.

It allows individuals to bypass traditional banking systems, which are often restricted due to international sanctions.

This decentralized nature enables users to conduct transactions without the oversight of commercial banks, making it harder for authorities to track and control financial activities.

Examples of Usage

Iran: Citizens have increasingly turned to Bitcoin to facilitate trade and pay for imports, circumventing U.S. sanctions.

The Iranian government has even legalized cryptocurrency payments for imports to mitigate the economic impact of sanctions.

Venezuela: In response to hyperinflation and strict financial controls, Venezuelans are using Bitcoin to receive remittances from abroad.

This method allows them to avoid high fees imposed by local banks and government restrictions.

North Korea: The regime has utilized cryptocurrencies to recover lost revenues through cyberattacks and illicit activities, further demonstrating how Bitcoin can be a double-edged sword in sanctioned environments.

Benefits Of Using Bitcoin

Censorship Resistance: Bitcoin transactions are peer-to-peer, meaning they are not routed through banks or third parties, making them less susceptible to government censorship.

Accessibility: Individuals can easily access Bitcoin through mobile wallets, allowing for quick transactions and transfers, even in restrictive environments.

Lower Transaction Costs: Compared to traditional banking fees, Bitcoin transactions can be completed with minimal costs, making it an attractive option for those in economically strained situations.

In summary, Bitcoin provides a means for citizens in sanctioned countries to maintain financial autonomy and engage in economic activities despite restrictive measures imposed by their governments or international bodies.

Bitcoin Not Bolivar

Carlos Hernández, a Venezuelan living in Ciudad Guayana, told his story in The New York Times on Saturday about how bitcoin is saving his family throughout the ongoing crisis in Venezuela. Citing the bolivar’s daily inflation rate of around 3.5 percent, he wrote:

I don’t own bolívars, Venezuela’s official currency. I keep all of my money in bitcoin. Keeping it in bolívars would be financial suicide.

Venezuela Sets New Bitcoin Volume Record Thanks To 10,000,000% Inflation

He explained that he does not have a bank account abroad and “With Venezuela’s currency controls, there’s no easy way for me to use a conventional foreign currency like American dollars.”

Hernández revealed that cryptocurrency has enabled him to cover his household expenses on his own, noting that his father, a government employee, earns $6 a month and his stay-at-home mom has no income.

His brother also relies on cryptocurrency. Juan, a 28-year-old lawyer, became a freelancer because “in times of hyperinflation, everyone is constantly getting poorer, including a lawyer’s clients,” Hernández detailed. He added that his brother “had to turn to cryptocurrencies to get paid” because he could not use Paypal, a common way for websites to pay freelancers, due to “exchange controls here allow[ing] Venezuelan banks to use only local currency.” Moreover, cryptocurrency helped Juan avoid his money being seized at the borders when he tried to move to Colombia. “Venezuelan military personnel at the borders have a reputation for seizing the money of people who want to leave,” Hernández exclaimed. Overall, he concluded:

You could say that cryptocurrencies have saved our family.

Converting Crypto Into Bolivars

In order to buy everyday necessities such as milk, Hernández explained that cryptocurrencies must be converted into bolivars. He uses Localbitcoins to find buyers who use the same bank he does so “the wire transfer can go through immediately,” he said, elaborating:

I can’t change too many bitcoins at once, though. The government doesn’t monitor cryptocurrency transactions (yet), but it does monitor transactions in bolívars — and any worth about $50 or more will automatically freeze your account until you can explain to your bank where the funds come from.

Localbitcoins has been a popular platform for Venezuelans. The trading volume on the exchange has been steadily rising, hitting a record high of 2,487 BTC for the week ending Feb. 9 before settling at 1,939 BTC last week.

Another international exchange platform, Paxful, told news.Bitcoin.com last week that it also saw record volume in Venezuela, which increased 74.66 percent compared to last year. In addition, the number of trades on the platform increased by 118 percent to an average of 61,534 transactions monthly.

Recently the government of Nicolas Maduro published decrees to regulate crypto activities in Venezuela, including taxing remittances.

Charities Using Bitcoin

Like Hernández, charities in Venezuela have also been able to benefit from bitcoin’s borderless nature. One such charity is Bitcoin Venezuela, a nonprofit organization that uses bitcoin to raise funds to aid Venezuelans while offering education in basic economics.

For Venezuela’s International Children’s Day last year, the nonprofit’s humanitarian aid project collected bitcoin donations from Paxful and others. It then gave food to a soup kitchen that feeds 1,500 people daily, two orphanages, and distributed hundreds of meals to people on the street.

On Feb. 10, Eatbch, a Venezuelan nonprofit food drive powered by bitcoin cash, celebrated its one-year anniversary. Within a few months of launch, the charity was “giving thousands of meals each week in 23 locations in 6 states of the country,” its co-founder described.

Updated: 2-1-2026

How A Silicon Valley Startup Became A Bitcoin Lifeline For Venezuela

Fintech Kontigo, which recently raised $20 million from Coinbase and others, is under fire for its role in helping Venezuelans avoid sanctions.

The founders of fintech startup Kontigo eagerly embraced the Silicon Valley playbook: packing the company into a San Francisco home for a TikTok-ready hackathon; peppering their pitches with buzzwords about building a “neobank for Latinos”; and making outlandish claims about pioneering a Martian economy.

The performance helped the tiny, boisterous cryptocurrency startup land a coveted slot in the prestigious incubator Y Combinator and, in December, raise more than $20 million from big-name Silicon Valley investors, including Coinbase’s venture fund.

But the recent U.S. military action in Venezuela has put a spotlight on a controversial aspect of Kontigo’s business: It became a conduit for moving money in and out of the heavily sanctioned Venezuelan economy.

Now, Kontigo is facing service cutoffs by banks and payment networks—including JPMorgan Chase, Stripe and Bridge—and fending off allegations that it has undisclosed ties to the now-deposed Maduro regime, which the company denies.

A spokesman for Kontigo declined to answer questions about the business but said in a statement that the company is reviewing its practices.

“Kontigo is committed to expanding access to financial services to the underserved,” the spokesman said. “We are conducting an internal review and will share updates as appropriate.

We are committed to complying with U.S. laws, including U.S. sanctions, and we are evaluating existing sanctions procedures and protocols with a view to enhancing them where necessary.”

Co-founded in 2023 by Venezuelan Jesus Castillo, who casts himself as a David on the verge of vanquishing the mainstream banking Goliaths, Kontigo says its 1.2 million users across Latin America and South America have moved over $1 billion through its platform.

The app lets users exchange hard currency for dollar-pegged stablecoins so that users can make payments and interact with the traditional banking system.

Outside Venezuela, the company enticed investors by presenting itself as a platform for helping everyday Latin Americans facing hyperinflation.

Inside the country, however, it became a route around American sanctions that sought to choke off key parts of the Maduro regime from the international financial system.

According to presentation slides from a December invite-only promotional event in Caracas for potential partners, an economist invited by Kontigo explained how the company’s technology helped the Maduro regime evade U.S. sanctions on the country’s oil exports and route the sale proceeds back into the country’s economy in the form of cryptocurrency.

As sanctions have cut off Venezuela from traditional financial channels, the government increasingly turned to stablecoins to sell oil.

The economist at the event showed how in the second half of last year, nearly 80% of the country’s oil revenue came in the form of stablecoin payments.

Those funds are then exchanged for bolivars through banks, informal trading counters and government-authorized crypto exchanges such as Kontigo.

“The crypto market to the rescue,” read one slide.

For months, Kontigo offered users the ability to move money between U.S. bank accounts at JP Morgan Chase—transactions that are largely barred by sanctions—by routing them through an intermediary.

JPMorgan abruptly took steps to cut off the access late last year. Stripe, which Kontigo used to process payments and transactions, has cut off the company, according to people familiar with the matter.

When Kontigo struck a partnership with another financial firm it worked with in the U.S., Kontigo executives told the firm it had no operations on the ground in Venezuela, according to a person familiar with the matter. The partner recently took steps to end the Kontigo relationship, the person said.

A Boisterous Startup In The U.S.

Castillo co-founded Kontigo as a blockchain technology to address everyday financial problems in Venezuela, where hyperinflation and a lack of access to credit have made it hard for people to hold on to their savings.

The platform allowed users to exchange bolivars for dollar-pegged stablecoins that were more likely to hold their value.

To U.S. investors, Castillo presented an image of his startup as a plucky band of striving immigrants with big dreams, and early investors said they were drawn to the vision of a platform to help the truly needy.

In promotional materials, the company said Castillo and his colleagues built the company while trading off overnight shifts driving for Uber to stay afloat as they worked to build a financial system fit for “multiplanetary abundance” and to avoid “exporting Earth’s monetary and economic failures” to Mars.

In mid-2025, Kontigo began offering users access to free “virtual” U.S. bank accounts at JPMorgan, according to a promotional video posted on LinkedIn.

The accounts were offered through another fintech startup, Checkbook, according to people familiar with the arrangement, and JPMorgan didn’t have a banking relationship with Kontigo.

Nonetheless, Kontigo used the Chase Bank brand in its advertising.

In December, just weeks before the surprise U.S. raid that toppled the Venezuelan leadership, Kontigo announced that it had raised $20 million from investors including Coinbase Ventures and Alumni Ventures.

Coinbase and Alumni didn’t respond to requests for comment.

After the fundraising, Castillo posted a video to LinkedIn touting what he called a “$23 million” Silicon Valley mansion where he and the company’s seven-person staff could live without distraction to boost annual revenue to $100 million in 60 days.

“If you’re not willing to move to San Francisco with all your team and lock into a house for as long as necessary, you’re not serious enough, you don’t want it as much as we do, and you’re going to lose,” Castillo said.

The fundraising coincided with a rebranding of the company’s service as a way to give users anywhere in the world the ability to buy and sell dollar-pegged cryptocurrencies without providing identity documents, according to a promotional video.

“Jamie Dimon, we’re coming for you,” Castillo posted on LinkedIn, addressing the JPMorgan CEO and repeating his boast that he would build “the world’s biggest bank.”

A Different Message In Venezuela

In Venezuela, Kontigo operated through a license from the country’s cryptocurrency regulator, Sunacrip, that allowed it to operate a crypto enterprise with the state’s blessing.

Kontigo’s license was granted to a Venezuelan company called Oha Technology, and signed by Venezuela’s minister of finance.

Kontigo has since appeared to distance itself from Oha, saying it works with “local actors” in all of their markets. But until recently, Kontigo’s own website said it was licensed to operate by Sunacrip and listed Oha as its Venezuelan subsidiary.

Castillo’s personal webpage shows he was chief operating officer at a company called Oha AI. And in private group chat messages reviewed by The Wall Street Journal, Castillo celebrated receiving the Sunacrip license in January 2025 and shared the document.

At the invite-only promotional event in Caracas, company speakers highlighted the growing role of cryptocurrencies in the Venezuelan economy.

Proceeds of sanctioned oil sales were received in stablecoins, economist Asdrúbal Oliveros told the audience, then filtered into licensed crypto platforms such as Kontigo and its rival Crixto.

Venezuelan Kontigo users could use the app to move funds to and from their Banco de Venezuela accounts, even though that bank is subject to sanctions by the U.S. Treasury Department.

A Change In Fortunes

Just a few weeks after announcing its fundraising success, Kontigo’s fortunes began to turn.

In late December, the fact that Kontigo’s access to JPMorgan had been cut off became public via an article in the Information.

A few days later, a U.S. military operation deposed President Nicolás Maduro. Shortly after, influential independent fintech journalist Jason Mikula wrote about the company, raising allegations that Kontigo had secret ties to one of Maduro’s sons.

Kontigo went on the offensive.

When Sebastian Siemiatkowski, the CEO of payments platform Klarna, shared Mikula’s post on X, Kontigo’s official account wrote back that the company “will hold those who circulate these falsehoods accountable for the resulting harm to our business reputation.”

Then Kontigo told users it was hacked, with 1,005 users losing a total of roughly $341,000. The company said it made users whole.

In a nine-minute video posted to social media on Jan. 12, Castillo said in Spanish that the platform was under attack by both hackers and critics, and denied that Kontigo had any connections to the Maduro regime.

“The reality is that Kontigo’s success has been forged after years of hard work, resilience, and perseverance, without being anyone’s son-in-law, nephew, or cousin,” he said.

Still, the company has seemingly struggled to operate in light of the growing issues. Stripe and Bridge have cut off their relationship with Kontigo, according to people familiar with the matter, and users have reported that PayPal no longer processes payments on the app.

Oha Technology’s license from the Venezuelan crypto regulator expired on Jan. 8.

Kontigo’s main public cryptocurrency wallet, which the company lists on its website to allow anyone to “audit,” shows little to no activity in the past few days.

While the wallet had seen weekly transaction volumes averaging hundreds of thousands of dollars over several months, since Jan. 19 the wallet has seen only a handful of transactions in and out of roughly $1 each passing through.

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