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U.S. Lets Venezuela Fund Maduro’s Defense After Sanctions Hurdle

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U.S. officials finally lifted a barrier that had stalled Nicolás Maduro’s federal case by allowing Venezuela to fund his defense team. The move follows weeks of legal wrangling over sanctions that blocked the former president’s government from paying lawyers. The decision clears the first hurdle before a trial that could last years in 2026.

Jay Clayton, U.S. attorney for the Southern District of New York, filed a letter to Judge Alvin H. Hellerstein confirming that amended Treasury licenses now permit the payments. The Treasury Department’s Office of Foreign Assets Control had earlier modified a license that barred the funds, sparking protests from defense counsel and a judge’s threat to dismiss the indictment.

Under the new terms, Venezuelan funds can be transferred only if available after March 5, 2026, the date the two countries restored diplomatic ties. The concession satisfies the defense’s request to withdraw a motion to dismiss, while prosecutors and the court await a status hearing in 60 days that will set the next steps toward trial soon.

By removing the sanctions barrier, the U.S. clears a legal roadblock that had drawn criticism from civil‑rights advocates and raised questions about the administration’s consistency with its foreign‑policy shift. The decision underscores how diplomatic thawing can directly influence judicial proceedings, affecting not only Maduro’s fate but also the broader enforcement of U.S. sanctions regimes.