The U.S. Treasury has sanctioned two Iranian firms linked to a bitcoin insurance scheme, accusing them of facilitating sanctions evasion for the IRGC.
The U.S. Treasury Department has announced sanctions against two Iranian maritime insurance firms, accusing them of facilitating sanctions evasion through a bitcoin payment scheme linked to the Islamic Revolutionary Guard Corps (IRGC).
Insurance Scheme Allegedly Used to Evade Sanctions
The companies, Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, collectively known as Hormuz Safe, are said to extort commercial vessels by mandating insurance for transit through the Strait of Hormuz. This insurance purportedly covers risks that originate from the Iranian government, such as the seizure of vessels.
The Treasury described the operation as extortion rather than legitimate insurance, as it forces vessels to obtain coverage against threats largely posed by Iranian actions. Hormuz Safe, reportedly established by Iran's Ministry of Economy, accepts payments in bitcoin and other cryptocurrencies, aiming to bypass Western sanctions.
Previous reports indicated that this maritime insurance scheme could potentially yield over $10 billion in revenue, although these figures remain unverified.
With the sanctions, American citizens are prohibited from engaging with the two companies, and foreign entities that do business with them may face secondary sanctions. The Treasury clarified that bitcoin payments would be treated similarly to conventional banking transactions regarding sanctions compliance.
Treasury Secretary Scott Bessent noted the Iranian regime's dire economic situation, stating, "With its economy in freefall and inflation in the triple digits, the regime is desperate for cash." This highlights the urgency of Iran's efforts to secure funding amidst ongoing U.S. military actions that have raised oil prices and decreased shipping traffic through the critical Strait of Hormuz.
