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U.S. sanctions Iran-linked bitcoin insurance plan for Strait of Hormuz
The Treasury said the scheme required ships transiting the Strait of Hormuz to buy coverage against risks tied to Iran, and that bitcoin payments could trigger secondary sanctions for foreign firms.
The U.S. Treasury has sanctioned two Iranian maritime insurance entities tied to a scheme that accepts bitcoin and other digital assets for shipping coverage in the Strait of Hormuz, according to CoinDesk.
Treasury accused Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, also known as Hormuz Safe, of running an extortion-like operation that forces commercial vessels to purchase insurance to transit the chokepoint while funneling proceeds to the Islamic Revolutionary Guard Corps.
Treasury said Hormuz Safe was developed by Iran's Ministry of Economy and is designed to accept payment in bitcoin and other digital assets as part of attempts to bypass Western sanctions. The designations bar U.S. persons from dealing with the companies and expose foreign firms that transact with them to secondary sanctions.
CoinDesk previously reported on the plan on May 18, citing state-linked Fars News accounts describing an economy ministry proposal to manage shipping through the Strait using bitcoin-settled marine insurance policies. The U.S. said the sanctions came under an executive order covering Iran's petroleum and petrochemical sectors.
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