U.S. warns investors over Venezuela's 'petro' cryptocurrency

"Available information indicates that, once issued, the petro digital currency would appear to be an extension of credit to the Venezuelan government," a Treasury spokesman told Reuters on Tuesday, citing U.S. sanctions that prohibit dealings in new debt from the Venezuelan government or its state oil company PDVSA [PDVSA.UL].

"The Venezuelan petro currency could therefore expose U.S. persons to legal risk," the spokesman added.

(Reporting by Lesley Wroughton, Editing by Rosalba O'Brien)