US Treasury Sanctions Iranian Firms for Extortion Scheme at Strait of Hormuz
The US Treasury has sanctioned two Iranian firms for their role in an extortion scheme that forces commercial vessels to buy mandatory maritime insurance to transit the Strait of Hormuz. The firms, Hormuz Safe and Persian Gulf Marine Insurance Company, are involved in a plan where vessels pay for 'insurance' approved by the Islamic Revolutionary Guard Corps (IRGC) to pass through the strategic waterway.
The Treasury's Office of Foreign Assets Control (OFAC) said that Hormuz Safe accepts Bitcoin and other digital assets as payment for this insurance. This is seen as an attempt by Iran to bypass Western sanctions, which have been imposed on the country due to its nuclear program and human rights abuses.
Blockchain analysts had previously expressed skepticism about reports of Iran demanding crypto tolls from shipping, with some saying there was no evidence that crypto was being used at scale for Hormuz transit. However, the Treasury's designation appears to settle part of this debate, naming a firm built by a government ministry that takes Bitcoin.
The sanctions were announced as the Iranian economy is facing significant challenges, including inflation in triple digits and a struggling currency. The US Treasury Secretary said that Iran is 'desperate for cash' and that Washington would not let it 'hold global commerce hostage.'