US Treasury Sanctions Iranian Firms Taking Bitcoin for Hormuz Passage
The US Treasury's Office of Foreign Assets Control sanctioned two Iranian firms involved in a scheme requiring vessels to buy IRGC-approved insurance to cross the Strait of Hormuz. One of the designated firms, HormuzSafe Marine Services Authority, was created by Iran's Ministry of Economy and offers traffic control, security, emergency response, and insurance services. The insurance policies are brokered by Persian Gulf Marine Insurance Company, established by Iran's insurance regulator and approved by the IRGC-backed Persian Gulf Strait Authority. Hormuz Safe accepts payment in Bitcoin and other digital assets, which the Treasury stated is an attempt to circumvent Western sanctions. Blockchain analysts previously expressed skepticism about the widespread use of cryptocurrency for Hormuz transit payments, citing a lack of supporting data. Babak Morteza Zanjani, an Iranian financier sanctioned earlier in the year, promoted the use of cryptocurrency payments for Hormuz passage on social media. Treasury Secretary Scott Bessent described the Iranian regime as desperate for cash, with its economy in freefall and inflation in triple digits. The Treasury also designated eight tankers and their operators, mostly registered in Hong Kong, linked to Iranian crude and petroleum shipments. Since January, more than 100 vessels associated with Iran's shadow fleet have been sanctioned by the US Treasury. The insurance schemes were reportedly established to replace revenue lost due to Operation Epic Fury, according to the Treasury. Vessels crossing the Strait of Hormuz, a chokepoint carrying a fifth of the world's oil, must purchase maritime insurance approved by the Islamic Revolutionary Guard Corps.
Coinbase Says Revenue From Its Base Layer 2 Fell Despite Record Volume
Coinbase reported that revenue from its Base Layer 2 network fell despite a record stablecoin transaction volume growth of seven times year-over-year. The Base sequencer fees bucket shrank from $68 million in Q3 2025 to $47.4 million last quarter, reflecting the decline in Base revenue. CEO Brian Armstrong stated that Base processed about $32 trillion in stablecoin transfer volume over the last 12 months, making it number one among all chains. Coinbase deliberately engineered Base to offer sub-cent, sub-one-second settlement times as a product goal, balancing scale with revenue generation. More than 90% of agentic stablecoin transactions, initiated by AI agents via Coinbase's x402 protocol, settle on Base, driving users toward USDC. Coinbase captured roughly 50% of all USDC economics over the past year, with stablecoin revenue of $292.1 million nearly half of its total transaction revenue in Q2. Despite strong stablecoin revenue, Coinbase's overall revenue of $1.22 billion missed estimates, posting a $359.5 million net loss for the third consecutive quarter. Coinbase's ETH holdings remained flat at 150,279 ETH for investment, valued at $235.7 million against a $340.6 million cost basis, according to the 10-Q. Average borrow and lend balances in the Coinbase app reached a record $1.49 billion, up from $199 million a year ago, powered mainly by Morpho on Base. Coinbase confirmed that Jordan Fish, known as Cobie, joined to run the Base app, bringing experience from the crypto-native community. Armstrong discussed the possibility of consolidation in the L2 space, questioning how and when an M&A-type process might occur among blockchains. The earnings report made no mention of a Base token, with Armstrong emphasizing a two-year head start on decentralization over competitors like Robinhood and Stripe.
Strategy’s STRC surges toward $90 as MSTR falls over 7%
Strategy Inc, formerly MicroStrategy, rebranded in August 2025 to emphasize its focus as a Bitcoin Treasury Company. The company issued STRC, a Variable Rate Series A Perpetual Stretch Preferred Stock, which is climbing toward its $90 IPO price. STRC has been trading between $88 and $89.50, showing steady upward momentum toward the $90 level set at its July 29, 2025 IPO. The IPO raised approximately $2.521 billion gross, with net proceeds around $2.474 billion, which were used to buy 21,021 Bitcoin. Strategy used the proceeds to purchase Bitcoin at an average price near $117,256 per coin, creating a yield instrument for investors. STRC currently pays a variable annualized dividend rate of 12%, adjusted monthly by the board to maintain trading near par value. Investors buy STRC for the company's creditworthiness and dividend payments, not for a direct claim on the Bitcoin treasury. None of Strategy's preferred share series, including STRC, are collateralized by the company's Bitcoin holdings. Meanwhile, MSTR common shares fell over 7% intraday, trading in the low $90s, contrasting with STRC's upward trend. The risk lies in the capital structure where preferred dividends come from corporate cash flows, not Bitcoin itself. If Bitcoin's price drops significantly, Strategy might need to reduce dividends, sell Bitcoin at a loss, or find other revenue sources. The monthly board adjustment mechanism provides flexibility but also implies potential dividend cuts for STRC holders.
Bitcoin price sinks to 2-week lows as US stocks fail to copy Asia rebound
Bitcoin's BTC/USD pair ended the monthly candle up 8.5%, marking its strongest July performance since 2022, according to CoinGlass data. Traders had expected a relief bounce for BTC/USD lasting until August, similar to the 2022 bear market pattern and reaching a long-term bottom. Analyst Rekt Capital forecast that Bitcoin's price might not turn immediately and could rollover in early August, echoing 2022's behavior. Rekt Capital also noted Bitcoin's 50-month exponential moving average at $65,820 remained a resistance level after two failed breakouts since mid-June. Bitcoin price sank to two-week lows as US stocks failed to copy the rebound seen in Asian markets. South Korea's KOSPI index surged 17.9%, its largest single-day gain on record, led by semiconductor shares tied to AI and memory-chip cycles. Crypto market trading activity increased alongside KOSPI fluctuations, highlighting links between crypto liquidity, regional equities, and tech-sector sentiment. Japan and Korea engaged in currency interventions recently, while Japan's central bank maintained interest rates at 1.0%, following the US Federal Reserve's pause. Data from TradingView showed BTC/USD fell 3.5% to $62,369 on Bitstamp, a level last seen on July 14, as US stocks turned red at the open. Bitcoin experienced fresh downside pressure as US stocks remained sideways into the month-end, diverging from Asia's relief bounce.
Dubai-based crypto exchange tied to $4 billion Iran sanctioned-evasion network
A Dubai-based illegal gambling network channels millions of dollars in cryptocurrency through Shelbit, an unlicensed exchange central to a $4 billion Iranian sanctions-evasion scheme. Shelbit is operated by Iranian expatriate Siavash Kayvanpour and has moved hundreds of millions of dollars through major crypto platforms. The network provides Iran's central bank and other sanctioned entities access to global cryptocurrency markets. Shelbit interacts directly with Iran's central bank, wallets linked to the IRGC, and Nobitex, an Iranian exchange sanctioned by the U.S. government. This operation is among the largest Iranian sanctions-evasion networks discovered since 2016, when a $20 billion IRGC gold-for-oil scheme was broken up. The Central Bank of Iran has been sanctioned under U.S. counterterrorism authorities since 2019 for supporting the IRGC, its Quds Force, and Hezbollah. Shelbit has moved hundreds of millions of dollars to prominent crypto companies, including Binance, the world's largest exchange. Binance stated that Shelbit never held an account on its platform and that related transactions were not considered high risk. Binance investigated users associated with Shelbit, froze relevant accounts, and reported them to law enforcement authorities. Independent investigators and U.S. officials say the operation appears closely tied to Iran's Islamic Revolutionary Guard Corps, though direct control is unconfirmed. The illegal gambling network, considered one of the world's largest with over 2,000 platforms, is a major customer of Shelbit. Some cryptocurrency flowing to Shelbit originated from an Iranian bitcoin mining operation that creates new digital coins.
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