U.S. Sanctions on Iranian Companies
On July 29, the U.S. Treasury Department imposed sanctions on two Iranian companies involved in maritime insurance, citing their connections to the Islamic Revolutionary Guard Corps (IRGC) and a revenue collection scheme linked to vessels navigating through the Strait of Hormuz. The designated companies, HormuzSafe Marine Services Authority and Persian Gulf Marine Insurance Company, have been added to the Specially Designated Nationals (SDN) list under Executive Order 13902, which specifically targets entities operating in Iran’s financial sector.
Allegations of Extortion and Digital Currency Use
According to the Office of Foreign Assets Control (OFAC), both firms are integral to an alleged extortion operation that has forced commercial ships to obtain sanctioned maritime insurance before traversing the critical waterway. The Treasury’s accusations highlight a complex scheme where payments are made in digital currencies, including Bitcoin, aimed at circumventing existing sanctions against Iran.
The U.S. government claims that HormuzSafe, reportedly developed by Iran’s Ministry of Economy, facilitates revenue collection for the IRGC while allowing transactions in Bitcoin and other digital currencies, tightening Iran’s grip on maritime shipping in the region. However, the sanctions announcement did not provide specific details such as Bitcoin addresses or transaction amounts, raising questions about the veracity of the claims. As it stands, there is no comprehensive on-chain evidence presented in the announcement to prove the completion of Bitcoin payments.
Market Activities and Revenue Predictions
In May, HormuzSafe had already begun to market maritime insurance options payable in Bitcoin, offering policies and certificates of financial responsibility for vessels operating in the strategic Strait of Hormuz. Speculative reports from Iranian state-affiliated sources suggested that the platform could generate upwards of $10 billion annually, although such predictions have not been substantiated by actual revenue figures or independent data.
Escalation of Sanctions
This recent action represents a significant escalation, turning HormuzSafe from a previously discussed potential evader of sanctions into a formally designated target within the U.S. sanctions framework. Additionally, the Treasury announced sanctions against eight more companies connected to Iranian oil, which are registered in China, Hong Kong, and the Marshall Islands. These firms have been associated with the transport of Iranian crude oil, with several tankers identified as blocked property due to their involvement in these activities.
Impact on Global Energy Shipping
The Strait of Hormuz continues to play a vital role in global energy shipping, accounting for more than 25% of the world’s seaborne oil trade and approximately 20% of global oil consumption during 2024 and early 2025. As part of the new sanctions, any assets belonging to the sanctioned companies that fall under U.S. jurisdiction must be blocked, and U.S. citizens are prohibited from engaging in financial transactions or services involving the designated entities.
Continued Measures Against Iran
While the sanctions do not include any seizure of cryptocurrency or legal actions against customers using HormuzSafe, they signify a continued tightening of measures against Iran’s revenue systems linked to its maritime operations. In a related note, U.S. authorities had earlier frozen $344 million in USDT associated with Iranian links, noting that unlike Bitcoin, USDT can be controlled and frozen by its centralized issuer.
Overall, the latest sanctions reflect ongoing U.S. efforts to disrupt Iran’s financial maneuvers and maritime activities while underscoring the significant challenges posed by cryptocurrency in evading traditional financial oversight.
