US Treasury sanctions Iranian firms accepting Bitcoin for Hormuz passage
In brief
- OFAC sanctioned two Iranian firms tied to Bitcoin payment scheme for Strait of Hormuz passage
- HormuzSafe Marine Services Authority accepts cryptocurrency to bypass Western shipping sanctions
- Treasury designated eight tankers and operators; over 100 shadow-fleet vessels sanctioned since January
- Treasury Secretary Bessent said Iran's economy in freefall, desperate for cash
The Bitcoin Toll Scheme
Commercial vessels crossing the Strait of Hormuz are required to purchase mandatory maritime insurance approved by Iran's Islamic Revolutionary Guard Corps. Persian Gulf Marine Insurance Company, set up by Iran's insurance regulator, brokers the policies. Treasury said the insurance schemes were set up to replace revenue lost to Operation Epic Fury, a prior enforcement action targeting Iran's oil sales.
HormuzSafe markets itself as a maritime services provider but functions as part of this broader sanctions-evasion network. Babak Morteza Zanjani, an Iranian financier sanctioned earlier this year, promoted HormuzSafe to his social media followers. The firm's acceptance of digital assets represents an attempt to circumvent traditional banking channels and Western financial oversight.
Expanding Sanctions on Iran's Shadow Fleet
The same Treasury action designated eight tankers and their operators over cargoes of Iranian crude and petroleum products, most registered in Hong Kong. More than 100 vessels tied to Iran's shadow fleet have been sanctioned since January. The Persian Gulf Strait Authority, which is IRGC-backed, approved the maritime insurance policies and was designated by Washington in May.
Treasury Secretary Scott Bessent characterized Iran's economic desperation in stark terms. "Treasury Secretary Scott Bessent said the Iranian regime is "desperate for cash," with its economy "in freefall" and inflation in triple digits, and that Washington would not let Iran "hold global commerce hostage."" The statement underscores the administration's view that cryptocurrency tolls represent a novel sanctions-evasion tactic tied to Iran's economic pressure.
Skepticism Over Crypto Scale
When the Financial Times reported in April that Iran would demand crypto tolls from shipping, starting at $1 a barrel, blockchain industry observers raised questions about feasibility. TRM Labs policy head Ari Redbord expressed skepticism about crypto being used at scale for Hormuz transit, citing a lack of evidence that the scheme would operate meaningfully in practice.
The Treasury's action suggests the scheme moved from proposal to operational reality, at least in Iran's view. Whether commercial shipping actually adopted the Bitcoin payment option in significant volume remains unclear, but the designation signals Washington's intent to disrupt the infrastructure before it scales.
