- The U.S. Treasury sanctioned two Iranian maritime insurance firms linked to an IRGC-backed operation in the Strait of Hormuz.
- Treasury said the bitcoin insurance platform Hormuz Safe accepted Bitcoin and other digital assets as part of efforts to bypass Western sanctions.
- U.S. persons are generally barred from transacting with the designated firms, while foreign companies may also face sanctions exposure.
The U.S. Treasury has sanctioned two Iranian firms connected to a maritime operation that accepted digital-asset payments from vessels transiting the Strait of Hormuz. Officials described the arrangement as an extortion scheme rather than conventional insurance, saying commercial ships were pressured to purchase mandatory coverage against risks such as vessel seizures that Iran largely created itself. The designated companies were Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, also known as Hormuz Safe. Treasury said the operation generated revenue for the Islamic Revolutionary Guard Corps while using Bitcoin and other digital assets in an effort to bypass Western restrictions. The action places bitcoin insurance at the center of a wider sanctions case involving maritime trade, shipping security and one of the world’s most important energy routes.
Treasury sanctions bitcoin insurance firms
The Office of Foreign Assets Control designated Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority on July 29. Treasury said both companies played central roles in an IRGC-backed operation that required commercial vessels to buy maritime coverage before passing through the Strait of Hormuz. The department said the bitcoin insurance policies were presented as protection against seizures, security incidents and other transit risks.
Treasury argued that the model was coercive because many of the dangers covered by the policies were created or controlled by Iran itself. Persian Gulf Marine Insurance Company was established by Iran’s primary insurance regulator and issued policies approved by the Persian Gulf Strait Authority, an IRGC-backed body sanctioned in May. The proceeds were intended to strengthen Iran’s control over shipping and support IRGC operations.
How the bitcoin insurance scheme operated
Hormuz Safe advertised insurance, traffic control, security and emergency-response services for vessels using the Strait of Hormuz. According to Treasury, the digital insurance firm was developed by Iran’s Ministry of Economy and accepted Bitcoin and other digital assets as part of the government’s attempts to avoid Western sanctions. This payment structure allowed the operation to collect funds outside conventional dollar-based channels.
CoinDesk had reported on the plan in May after state-linked Fars News accounts described a proposal for bitcoin-settled maritime policies and financial-responsibility certificates. The reported platform promised cryptographically verified policies that would become active after payment. At that stage, however, its website appeared to contain only a landing page, and CoinDesk could not independently confirm that the service was operational or had been used by cargo owners.
Sanctions exposure for maritime companies
The two bitcoin insurance firms were designated under Executive Order 13902 for operating in the financial sector of Iran’s economy. As a result, property and interests in property belonging to the designated entities that are held in the United States or controlled by U.S. persons must be blocked and reported to OFAC. U.S. persons are generally prohibited from conducting transactions involving the firms unless an exemption or authorization applies.
Treasury also warned that financial institutions and other businesses may face sanctions exposure for certain dealings with blocked parties. Using bitcoin insurance does not remove that risk simply because a payment avoids a traditional bank. Foreign shipowners, traders, insurers and payment intermediaries must still consider whether a transaction provides funds, goods or services to a designated entity or helps another party evade U.S. restrictions.
Why the Strait of Hormuz matters
The Strait of Hormuz is a critical route for global oil and gas shipments, which makes any effort to control passage commercially and politically significant. Treasury presented the insurance arrangement as part of a broader attempt to monetize Iran’s influence over the waterway while raising revenue from international shipping. Secretary Scott Bessent said Iran’s government was desperate for cash and accused it of using commerce to finance the IRGC.
The sanctions also arrive amid heightened military and economic pressure around the strait. Reduced shipping activity and elevated oil prices have increased the importance of any system that could affect vessel access, insurance costs or payment methods. For the crypto sector, the bitcoin insurance case demonstrates that digital-asset settlement does not shield a transaction from sanctions rules when the recipient or underlying activity is restricted.
Conclusion
The Treasury action connects bitcoin insurance with an alleged maritime extortion operation in the Strait of Hormuz. U.S. officials said Persian Gulf Marine Insurance Company and Hormuz Safe forced vessels to purchase coverage, accepted digital assets to bypass restrictions and generated revenue for the IRGC. The designations block the firms’ property under U.S. jurisdiction and restrict transactions involving them, while also warning foreign companies about potential exposure. Earlier reporting showed that Hormuz Safe had been promoted as a bitcoin-settled insurance platform, although its operational status was initially unverified. The case shows that changing the payment rail from banks to Bitcoin does not eliminate sanctions risk when a transaction involves a designated company.
Disclaimer
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