U.S. sanctions Iran-linked bitcoin insurance scheme for Strait of Hormuz ships
The U.S. Treasury has sanctioned two Iran-linked entities, Persian Gulf Marine Insurance Company and HormuzSafe, for operating a bitcoin-based insurance scheme. The U.S. alleges the platform is a tool for the Iranian regime to bypass international sanctions and generate revenue through extortion-like shipping policies.
Why it matters
This action highlights the intersection of cryptocurrency, international sanctions enforcement, and the strategic importance of the Strait of Hormuz in global energy markets.
The Office of Foreign Assets Control designated the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, known as Hormuz Safe.
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.
CoinDesk reported the existence of the plan on May 18, based on state-linked Fars News accounts describing an economy ministry proposal to manage shipping through the Strait using bitcoin-settled marine insurance policies.
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