US Targets Iran's Bitcoin-Backed Insurance Scheme in Strait of Hormuz

The US Treasury's Office of Foreign Assets Control (OFAC) has taken action against companies tied to Iran's regime for allegedly using Bitcoin as a means to bypass sanctions. According to OFAC, Hormuz Safe, developed by Iran's Ministry of Economy, accepts payment in Bitcoin and other digital assets to facilitate transactions through the Strait of Hormuz.

Ships have been scarce in the strategic waterway since the US and Israel attacked Iran in February, with over a fifth of the world's oil passing through it. The US Treasury has frozen crypto linked to the Iranian regime, mostly in the form of Tether stablecoin (USDT), but notes that Bitcoin cannot be frozen due to its decentralized nature.

Secretary of the Treasury Scott Bessent stated that Iran is 'desperate for cash' with their economy in freefall and inflation in the triple digits. The US will not allow Iran to use international shipping to finance terrorism, aggression, and repression.