US Sanctions Iranian Firms for Bitcoin-Based 'Extortion' Scheme
The US Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two Iranian firms, HormuzSafe Marine Services Authority and the Persian Gulf Marine Insurance Company, for allegedly forcing commercial vessels to buy mandatory 'insurance' to transit the Strait of Hormuz.
HormuzSafe accepts Bitcoin and other digital assets as payment, bypassing Western sanctions, according to OFAC. The agency claims that the coverage protects vessels against risks created by Iran itself, including seizures, and generates revenue on behalf of the IRGC (Islamic Revolutionary Guard Corps).
The Treasury says that the regime is 'desperate for cash' due to its economy being in freefall with inflation in the triple digits. OFAC added that the US will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC's terrorism, aggression, and repression.