The US Treasury sanctioned two Iranian companies Wednesday: HormuzSafe Marine Services Authority and Persian Gulf Marine Insurance Company. These firms run a forced insurance program for ships passing through the Strait of Hormuz, requiring commercial vessels to buy coverage that protects against risks created by Iran itself. HormuzSafe accepts Bitcoin and other cryptocurrencies to evade sanctions.
According to the Treasury, HormuzSafe was created by Iran's Ministry of Economy to offer maritime insurance, traffic control, and security services. It operates as a digital insurance provider and channels funds back to the Islamic Revolutionary Guard Corps (IRGC). This scheme essentially extorts shipping companies by holding their passage hostage while generating revenue for IRGC-backed operations.
Sanctions Target Iran's Crypto Workarounds
The Persian Gulf Marine Insurance Company was set up by Iran's central insurance regulator and works alongside the Persian Gulf Strait Authority, an IRGC-backed body already sanctioned earlier this year. The US Treasury action comes amid Iran's economic crisis, with triple-digit inflation pushing the regime to exploit unconventional methods like cryptocurrency to fund its activities.
With international banks cutting ties, Iranian state-linked firms increasingly turn to crypto rails. All assets of these firms under US jurisdiction are frozen, and secondary sanctions may apply to non-US persons dealing with them. The Treasury's move is part of growing efforts to clamp down on Iran's financial networks using digital currencies.
This content is for informational purposes only and does not constitute financial advice.
