Iran's Crypto-Backed Maritime Extortion Scheme Exposed by US Treasury Sanctions

The US Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two Iranian firms, Persian Gulf Marine Insurance Company (PGMIC) and HormuzSafe Marine Services Authority, for operating a maritime extortion scheme that uses cryptocurrency payments.

The scheme involves forcing commercial ships to purchase insurance policies covering risks created by Iran itself, including vessel seizures and harassment by the Islamic Revolutionary Guard Corps (IRGC) naval forces. These insurance policies are designed to facilitate payments in digital assets, allowing Iranian entities to collect revenue while evading traditional banking channels subject to US sanctions.

The designations were made under Executive Order 13902, which targets Iran's financial sector. OFAC also sanctioned eight shipping companies based in China, Hong Kong, and the Marshall Islands for their ties to Iran's petroleum industry.