US Slaps Sanctions on Iran-Locked Crypto-Backed Insurance Scheme

The U.S. Treasury has imposed sanctions on two Iranian firms behind a maritime insurance operation that accepted Bitcoin, calling it an extortion scheme that forced commercial vessels to buy coverage to pass through the Strait of Hormuz.

The Office of Foreign Assets Control designated the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, known as Hormuz Safe, for their role in funneling funds to the Islamic Revolutionary Guard Corps.

The Treasury described the arrangement as extortion rather than insurance, noting that the policies covered risks such as vessel seizures that 'are overwhelmingly created by Iran itself.'

Hormuz Safe was developed by Iran's Ministry of Economy and 'accepts payment in Bitcoin and other digital assets as part of the regime's attempts to bypass Western sanctions,' according to the Treasury statement.