US Sanctions Iranian Firms for Bitcoin Insurance Scheme to Fund IRGC

Woofun AI reports that the US Treasury has imposed sanctions on two Iranian maritime firms, Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, alongside eight shadow fleet entities, accusing them of facilitating an Islamic Revolutionary Guard Corps (IRGC)-backed insurance network. The Office of Foreign Assets Control (OFAC) designated these organizations for operating within Iran’s financial sector and accepting Bitcoin (BTC) and other digital assets to evade Western restrictions. Treasury Secretary Scott Bessent stated that the United States will not allow Iran to hold global commerce hostage, emphasizing that the regime uses international shipping to finance the IRGC.

Structurally, the sanctions target the operational mechanism of this alleged network, which requires commercial vessels to purchase approved coverage before transiting the Strait of Hormuz. OFAC identified eight companies linked to Iran’s shadow fleet and designated eight specific vessels as blocked property. The authority alleged that HormuzSafe accepted BTC and other crypto as part of efforts to evade sanctions, thereby generating revenue on behalf of the IRGC while helping Iran exert greater control over shipping through the strait. This designation marks a direct intervention into the financial infrastructure supporting Iran’s maritime operations.

Per Woofun AI, the controversy intensified after screenshots of the HormuzSafe website circulated online on May 18, offering "digital insurance" for maritime cargo with policies payable in Bitcoin. At that time, reports suggested Iran was still considering the insurance-based model, and the website was inaccessible when checked. Iranian state-linked media Fars News Agency claimed the proposed platform could issue marine insurance policies and certificates of financial responsibility while potentially generating over $10 billion in revenue. These claims highlight the scale of the financial ambitions behind the digital insurance initiative.

The deeper driver is the strategic importance of the Strait of Hormuz, which handles about one-fifth of the global oil trade, meaning efforts to monetize or control traffic through the waterway carry significant implications for international energy markets. Earlier reports, citing the Bitcoin Policy Institute, indicated that Iran accepted oil toll payments in Chinese yuan, Tether USDt (USDT), and Bitcoin, though there was no onchain evidence that any Bitcoin payments had yet been made. This lack of onchain verification underscores the opacity of these financial transactions and the challenges in tracking illicit flows.

Bitcoin may be attractive to sanctioned actors because it has no centralized issuer capable of freezing funds, unlike centralized stablecoins whose issuers can block addresses. In April, US authorities froze $344 million in USDT stablecoin linked to Iran, demonstrating the vulnerability of centralized assets to regulatory action. This precedent reinforces the appeal of decentralized cryptocurrencies for entities seeking to bypass financial restrictions, marking a critical shift in how sanctions evasion is conducted in the digital age.