U.S. Treasury Sanctions Iran Bitcoin Insurance Scheme for Strait of Hormuz
In brief
- Treasury sanctioned Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority for extortion scheme
- Vessels forced to purchase coverage to transit Strait of Hormuz, proceeds funneled to Islamic Revolutionary Guard Corps
- Platform accepted Bitcoin and digital assets as Iran's sanctions-evasion mechanism
- Treasury cited Iran's economic freefall and triple-digit inflation as scheme motive
The Scheme
The arrangement forced commercial vessels to pass through the Strait of Hormuz—one of the world's most important energy chokepoints—to purchase mandatory coverage. Proceeds from these policies funneled directly to the Islamic Revolutionary Guard Corps. HormuzSafe was developed by Iran's Ministry of Economy and approved by the Persian Gulf Strait Authority, an IRGC-backed body.
The platform's acceptance of Bitcoin and other digital assets marked a deliberate attempt to circumvent traditional financial controls. CoinDesk first reported the existence of the plan on May 18, citing state-linked Fars News accounts that claimed the model could generate more than $10 billion without providing justification for that projection.
Sanctions Impact
Designation means U.S. persons are barred from dealing with the two companies, and foreign firms that transact with them risk secondary sanctions themselves. The move reflects Washington's escalating pressure on Iran's revenue streams as the regime seeks alternative payment channels.
Treasury Secretary Scott Bessent underscored the economic desperation driving the scheme. The Iranian government's reliance on cryptocurrency-denominated extortion reveals how economic stress reshapes sanctions-evasion tactics across state actors and illicit networks alike.
This case illustrates a broader pattern: as traditional banking channels tighten, state and non-state actors increasingly turn to digital assets to move value across borders. The Treasury's action signals that crypto adoption—even in narrow, regime-controlled contexts—remains within Washington's enforcement reach.
