The U.S. government agreed Friday to allow the Venezuelan government to pay legal fees for detained Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, resolving a sanctions dispute that had threatened to derail their criminal case after a dismissal bid lost momentum, according to court filings and officials. The dispute centered on whether U.S. sanctions blocked Venezuela from funding the couple’s defense. Judge Alvin Hellerstein had earlier rejected attempts to dismiss the case over the issue, stating in March that he would not throw out the indictment but questioning restrictions o

The U.S. government agreed Friday to allow the Venezuelan government to pay legal fees for detained Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, resolving a sanctions dispute that had threatened to derail their criminal case after a dismissal bid lost momentum, according to court filings and officials.

The dispute centered on whether U.S. sanctions blocked Venezuela from funding the couple’s defense. Judge Alvin Hellerstein had earlier rejected attempts to dismiss the case over the issue, stating in March that he would not throw out the indictment but questioning restrictions on legal funding and warning the case could face constitutional problems if counsel could not be secured.

Maduro and Flores were captured in a January U.S. military operation in Caracas and brought to New York, where they remain in custody in Brooklyn. Both have pleaded not guilty.

Charges separated in indictment

Maduro faces a four-count indictment including narco-terrorism conspiracy, cocaine importation conspiracy, and possession of machine guns and destructive devices, according to federal filings.

Flores, his wife and co-defendant, faces three separate counts related to drug trafficking conspiracy and associated offenses, but she is not charged with narco-terrorism, according to the indictment.

OFAC licenses resolve funding dispute

The resolution followed the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issuing amended licenses allowing defense attorneys to receive payments from the Venezuelan government under strict conditions.

Prosecutors confirmed in court filings that payments may only come from funds made available after March 5, 2026, and cannot originate from restricted or blocked government accounts.

“The amended licenses authorize defense counsel to receive payments from the Government of Venezuela under certain conditions,” prosecutors said in a joint filing.

Defense withdraws dismissal motions

Following the OFAC decision, defense attorneys withdrew motions seeking dismissal of the case, ending weeks of legal uncertainty over whether sanctions enforcement would prevent Maduro and Flores from securing representation.

Case continues in Manhattan

Maduro and Flores remain detained in Brooklyn as proceedings continue in federal court in Manhattan before Judge Hellerstein.

The court has emphasized the defendants must have access to counsel while rejecting dismissal arguments tied to sanctions restrictions.

Political backdrop

The United States does not recognize Maduro as Venezuela’s legitimate leader following his removal from power during the January operation. Governance in Caracas is currently carried out by acting president Delcy Rodríguez.

The case continues under a tightly managed sanctions framework, where OFAC authorizations allow limited financial access solely to preserve the integrity of ongoing criminal proceedings.

Source: The New York Times

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