US Sanctions Iranian Firms for Strait of Hormuz 'Extortion' Scheme Using Bitcoin

The US Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two Iranian firms for operating an insurance scheme that targets commercial shipping in the Strait of Hormuz. The designations, announced on Wednesday, target HormuzSafe Marine Services Authority and the Persian Gulf Marine Insurance Company, which were developed by Iran's Ministry of Economy and established by the Central Insurance of the Islamic Republic of Iran, respectively.

HormuzSafe, a digital insurance firm that offers maritime services including traffic control, security, and emergency response, accepts payment in Bitcoin and other digital assets to bypass Western sanctions. The agency claims this is part of an IRGC-backed scheme that generates revenue on behalf of the Revolutionary Guard Corps (IRGC).

Treasury Secretary Scott Bessent stated that 'the United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC's terrorism, aggression, and repression.' The US has sanctioned more than 100 vessels tied to Iran's shadow fleet since the start of the year.