The U.S. Treasury has imposed sanctions on two Iranian maritime insurance companies, accusing them of operating a scheme that accepts bitcoin as payment and allegedly facilitates sanctions evasion related to the Islamic Revolutionary Guard Corps (IRGC).
The Hormuz Safe platform allegedly utilized digital currencies to bypass sanctions imposed on Iran.
According to the Treasury Department, the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, collectively referred to as Hormuz Safe, are accused of extorting commercial vessels by requiring them to purchase insurance to transit the Strait of Hormuz. This insurance purportedly covers risks that the Iranian regime itself generates, such as vessel seizures.
In a statement, the Treasury emphasized that this operation is more accurately described as extortion than insurance, as it compels ships to secure coverage against threats primarily created by Iranian actions. The Hormuz Safe initiative was reportedly established by Iran's Ministry of Economy and allows payments in bitcoin and other cryptocurrencies, aiming to circumvent Western sanctions.
Earlier reports from CoinDesk, citing the state-linked Fars News Agency, indicated that this maritime insurance plan could potentially generate over $10 billion, although the specifics of this claim remained unverified at the time.
The U.S. sanctions prohibit American citizens from engaging with these two companies, and foreign entities that transact with them could face secondary sanctions. Payments made in bitcoin are treated similarly to traditional banking transactions regarding potential sanctions.
Treasury Secretary Scott Bessent remarked, "With its economy in freefall and inflation in the triple digits, the regime is desperate for cash," highlighting the urgency behind Iran's measures to secure funding.
The Strait of Hormuz is a crucial global energy corridor, and ongoing U.S. military actions against Iran have contributed to heightened oil prices and reduced shipping traffic in the region.