U.S. Warns Crypto Toll in Strait of Hormuz Could Bring Sanctions

The U.S. Treasury’s Office of Foreign Assets Control issued an alert on May 1 warning that digital asset payments tied to transit through the Strait of Hormuz can create sanctions exposure. The agency said using cryptocurrency does not reduce legal risk for maritime firms, banks, insurers or other counterparties. The alert notes that U.S. persons are generally barred from transactions involving the Government of Iran or the Islamic Revolutionary Guard Corps and that Iranian digital asset exchanges are treated as blocked financial institutions.

The alert follows reports that Iran has formalized a toll system for vessels transiting the strait, codified March 31, 2026. The system reportedly uses Bitcoin as the primary payment method and accepts USDT in some cases. Fees are reported at roughly $0.50 to $1.00 per barrel, which would amount to about $2 million for a very large crude carrier. TRM Labs estimates IRGC-related revenue from the scheme at about $20 million per day. In late April, a tether issuer froze more than $344 million in Iranian-linked assets, and Treasury Secretary Scott Bessent announced that Operation Economic Fury had seized about $500 million in Iranian crypto assets.

OFAC warned that non-U.S. persons may face penalties for engaging with blocked Iranian digital asset exchanges and for participating in transactions that support the sanctioned Iranian financial sector. Secondary sanctions could limit access to the U.S. financial system. The agency highlighted that indirect involvement can create liability when transactions pass through insurers, banks or other financial intermediaries with U.S. links.

The reported IRGC transit process requires vessels to submit ownership and cargo details through intermediaries for approval. Payments are then routed to designated crypto wallets via a reported conversion window on Qeshm Island. After payment, crews receive a passcode over VHF radio and a naval escort may be provided. OFAC urged maritime operators, insurers and banks to verify wallet addresses, identify who arranged transit, and document whether fees were paid or promised as part of routine compliance checks.

The alert described operational risks tied to the payment flow. On April 21, reports said a vessel came under fire after its crew transferred funds to a fraudulent crypto wallet instead of an authorized address. OFAC’s guidance treats digital asset payments linked to Hormuz transit as sanctions exposure that requires the same compliance attention as traditional financial channels.