Iran Crisis Spotlights Regime’s $7.8 Billion Crypto Shadow Economy

The Strait of Hormuz is one of the world’s most important energy chokepoints, carrying roughly a fifth of seaborne oil. Under pressure from Western sanctions and dollar-based financial controls, Iran has sought to turn passage fees into mandatory maritime insurance and settle payments in Bitcoin and other digital assets. The structure matters because it links sanctions evasion and IRGC financing to commercial shipping, exposing shipowners, insurers and financial institutions to U.S. penalties even when payments bypass traditional banks.

The U.S. Treasury Department’s Office of Foreign Assets Control on July 29 sanctioned Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority, saying they operated an IRGC-backed scheme forcing vessels to buy coverage for Hormuz transit. Treasury said Hormuz Safe accepts Bitcoin and other digital assets and also blocked eight shadow-fleet tankers; OFAC has sanctioned more than 100 Iran-linked vessels this year. Iranian media said in May the platform could generate more than $10 billion annually, though that projection was not independently verified.

The United States has long used financial sanctions to restrict Iran’s access to dollars and cross-border payment services, prompting local businesses to turn to cryptocurrency. TRM Labs tracked about 60 wallets linked to sanctioned Iranian entities. Their transactions involved CoinEx and Nobitex, highlighting sanctions-compliance and anti-money-laundering risks at centralized exchanges.

A TRM Labs report said the wallets had moved more than $3.84 billion in cryptocurrency through CoinEx since 2019. About $2.7 billion, or roughly 70% of the total, went to Nobitex, Iran’s largest domestic exchange. CoinEx subsequently denied serving as a funding gateway for sanctioned Iranian crypto companies, leaving the two sides at odds over the exchange’s responsibility.