Iranian Maritime Company Faces US Sanctions Over Bitcoin Acceptance to Circumvent Restrictions
According to the US Treasury Department, HormuzSafe utilized Bitcoin along with other cryptocurrencies to bypass international sanctions while generating funds for Iran's Islamic Revolutionary Guard Corps.
Two Iranian maritime companies have been hit with sanctions by the US Treasury Department over their participation in what authorities describe as an Islamic Revolutionary Guard Corps (IRGC)-supported insurance operation, with officials stating that one of the firms utilized Bitcoin (BTC) alongside other cryptocurrencies to circumvent sanctions imposed by Western nations.
The Treasury's Office of Foreign Assets Control (OFAC) announced on Wednesday that both Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority played critical roles in what officials characterized as an IRGC-supported insurance scheme that mandated commercial shipping vessels to purchase authorized insurance coverage prior to passage through the Strait of Hormuz. Both entities received designations for their operations within Iran's financial services sector.
The Treasury's action follows previous reports indicating Iran was exploring the possibility of establishing a Bitcoin-based platform for maritime insurance. American officials are now claiming the operation served as a revenue stream for the IRGC. The Treasury Department additionally imposed sanctions on eight entities connected to Iran's shadow fleet operations and designated eight vessels as property subject to blocking.
According to OFAC, HormuzSafe utilized BTC along with additional cryptocurrencies as components of a strategy designed to circumvent international sanctions. Officials alleged that this platform created revenue streams on behalf of the IRGC while simultaneously enabling Iran to exercise enhanced authority over maritime traffic passing through the strait.
"The United States will not allow Iran to hold global commerce hostage,"
Treasury Secretary Scott Bessent said, accusing the regime of using international shipping to finance the IRGC.
HormuzSafe shifts from reported proposal to sanctions target
Screenshots of the HormuzSafe platform's website began circulating across the internet on May 18, displaying offerings for "digital insurance" services covering maritime cargo shipments, with insurance policies available for purchase using Bitcoin. Reports at that point in time indicated Iran was still evaluating the insurance-focused business model, and attempts to access the website were unsuccessful during verification efforts.
Fars News Agency, a media outlet with connections to the Iranian state, reported that the proposed platform would have the capability to issue marine insurance policies along with certificates of financial responsibility while potentially producing more than $10 billion in annual revenue.
Given that the Strait of Hormuz is responsible for facilitating approximately one-fifth of global petroleum trade, any attempts to monetize or exercise control over vessel traffic through this critical waterway have substantial ramifications for worldwide energy markets.
Previous reporting, which referenced information from the Bitcoin Policy Institute, indicated that Iran had been accepting payments for oil transit tolls in Chinese yuan, Tether USDt (USDT) and Bitcoin, although no blockchain evidence existed confirming that actual Bitcoin transactions had taken place at that time.
Bitcoin presents appeal to entities facing international sanctions due to the absence of any centralized authority with the power to freeze funds, which stands in contrast to centralized stablecoins whose issuing companies maintain the capability to block specific addresses. During April, authorities in the United States successfully froze $344 million worth of USDT stablecoin with ties to Iran.