Sanctioned Iran-linked firms accept crypto for maritime insurance
The U.S. Treasury has imposed sanctions on two Iranian maritime insurance firms, Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, for operating an extortion scheme that used digital assets to fund the Islamic Revolutionary Guard Corps. The U.S. government described the activities as disguised toll collection, where ships were required to purchase insurance to navigate the Strait of Hormuz, a key global energy chokepoint.
Hormuz Safe, an online insurance platform developed by Iran’s Ministry of Economy, functioned under the pretense of offering maritime protection, but it primarily covered risks like vessel seizures and disruptions that Iran itself caused. Payments in Bitcoin and other digital assets, the Treasury said, were part of an effort to circumvent international sanctions and move illicit funds into the regime’s coffers.
Bitcoin payments linked to a sanctions evasion tactic
The U.S. Treasury highlighted that the insurance platform allowed Iran to avoid detection within traditional banking systems, making the use of Bitcoin and digital assets a central part of the scheme. The designations by the Office of Foreign Assets Control prevent U.S. individuals from engaging with the firms, and foreign entities—whether transacting in crypto or fiat—could also face secondary sanctions. This move underscores the U.S. government’s focus on intercepting illicit financial flows, even when they appear in digital form.
He stated, 'With its economy in freefall and inflation in the triple digits, the regime is desperate for cash,' as a rationale for targeting this scheme.
Claims of $10 billion raised with unverified optimism
According to state-linked Fars News, Iran projected that the Hormuz Safe platform could generate more than $10 billion through its maritime insurance policies. However, the source gave no explanation for how this figure was calculated. At the time, CoinDesk could not verify whether the platform had begun operations or if any cargo owners had used it, though the website only showed a landing page. This lack of operational confirmation raised questions about the actual scale of the scheme.
The insurance policies, which were approved by the Persian Gulf Strait Authority, an entity backed by the Islamic Revolutionary Guard Corps, were sanctioned under an executive order targeting Iran’s energy exports. The Treasury said the platform operated as a coordinated effort between the sanctioned firms and their IRGC-backed regulator to siphon money into the regime. This action signals a broader strategy to disrupt financial flows that support Iran’s military and political objectives, particularly in a region already under tension due to recent U.S. military operations.
As the Strait of Hormuz remains a critical artery for global oil shipments, the Treasury’s move is intended to deter Iran from exploiting its strategic position through coercive financial tactics. The use of Bitcoin and other cryptocurrencies in this scheme highlights how digital assets can be weaponized to evade traditional financial systems and enforcement mechanisms.
This ongoing expansion reflects the growing role of cryptocurrency in the global economy, even as regulators increasingly target how such assets are used to bypass legal and economic constraints.