The U.S. Department of the Treasury announced sanctions against two Iranian companies—Persian Gulf Marine Insurance Company and HormuzSafe Maritime Services—accusing them of operating a marine insurance program that accepts Bitcoin and other digital assets.The Treasury Department stated that the program is designed to circumvent sanctions by requiring commercial vessels transiting the Strait of Hormuz to purchase insurance, with the proceeds funneled to the Islamic Revolutionary Guard Corps (IRGC).

The Treasury Department stated that the scheme—including the Hormuz Safe platform—was developed by Iran’s Ministry of Economy and uses digital assets such as Bitcoin to circumvent Western sanctions. These sanctions prohibit U.S. persons from transacting with these two companies; foreign companies that transact with them also face the risk of sanctions, as do those who make payments via Bitcoin.