The U.S. Treasury's Office of Foreign Assets Control sanctioned two Iranian entities Thursday for running an extortion scheme in the Strait of Hormuz that forces commercial vessels to buy maritime insurance — and accepts Bitcoin and other digital assets as payment. Treasury Secretary Scott Bessent linked the operation to Iran's worsening economy, which he described as 'in freefall' with 'inflation in the triple digits.'
How the scheme works
The scheme started in April, charging roughly $1 per barrel from tankers transiting the Strait. Iran set it up through its Ministry of Economy, which created the HormuzSafe Marine Services Authority. HormuzSafe offers insurance, traffic control, security, and emergency response services — and takes payment in Bitcoin and other digital assets. The Persian Gulf Marine Insurance Company, created by Iran's insurance regulator, issues policies approved by the Persian Gulf Strait Authority.
The sanctioned entities
OFAC designated the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority for supporting an IRGC-backed scheme that effectively extorts commercial vessels. The Treasury said the insurance scheme was designed to offset revenue lost after Operation Epic Fury. OFAC had already sanctioned the IRGC-backed Persian Gulf Strait Authority back on May 27. Thursday's action also hit eight shipping companies and identified eight oil tankers as blocked property, with operators registered in Hong Kong, the Marshall Islands, and China. Those vessels were transporting Iranian crude oil and petroleum products.
Broader crackdown on Iran's shadow fleet and crypto
Since January, OFAC has sanctioned more than 100 shadow fleet vessels. In mid-July, the agency sanctioned four cryptocurrency wallets linked to Iran's central bank, and Tether froze roughly $131 million in USDT held in those addresses. The new sanctions show the U.S. is tightening the screws on Iran's ability to move money — both through traditional shipping and through digital assets.
The Treasury didn't say whether it plans to target additional crypto addresses tied to the insurance scheme. But with Iran's economy in freefall and the regime leaning on Bitcoin to keep revenue flowing, more sanctions on digital wallets are likely. The eight tankers identified Thursday are now blocked property, meaning any U.S. person or company that deals with them could face penalties.
