A Reuters investigation ties Shelbit, an unlicensed Dubai crypto exchange, to a $4 billion sanctions-evasion network linking Iran's central bank, the Islamic Revolutionary Guard Corps and an illegal gambling operation to global crypto markets. At least $676 million of those funds moved to Binance, and Dubai regulators have now ordered Shelbit to halt its unlicensed activity as U.S. Treasury officials say they are taking the allegations seriously.
An unlicensed Dubai-based crypto exchange called Shelbit processed at least $4 billion in digital assets since May 2024, serving as a financial bridge between Iran's central bank, entities linked to the Islamic Revolutionary Guard Corps (IRGC), and an illegal Farsi-language gambling network, according to a Reuters investigation cited by The Block. Blockchain analysis behind that investigation found that at least $676 million moved from Shelbit-linked addresses to Binance. Roughly $540 million of that sum moved after Dubai regulators fined the unlicensed exchange in January 2025, Reuters reported.
A gambling network with state ties
Shelbit's customers included a network of more than 2,000 Farsi-language gambling websites promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari. Crypto Briefing reported that at least $250 million tied to those gambling sites flowed through Shelbit, citing the Reuters findings.
The exchange also maintained ties to Nobitex, Iran's largest crypto exchange, which the U.S. sanctioned in June. Sobhani and Mokhtari denied knowing Shelbit or its operator and said they were unaware of any Iranian state involvement in the gambling sites they promoted.
Binance defends its compliance response
Researcher Rich Sanders said he notified Binance about Shelbit's Iran ties in October 2025. Binance said Shelbit itself never held an account on its platform, though the exchange investigated, froze and reported to law enforcement any accounts tied to Shelbit's users. Binance told Reuters: "our compliance program operated as it should have."
Binance pleaded guilty in 2023 to anti-money-laundering and sanctions violations and agreed to pay a $4.3 billion fine. Crypto Briefing reported that Binance's former CEO, Changpeng Zhao, pleaded guilty to anti-money-laundering violations. U.S. officials said the exchange had facilitated about $900 million in transactions between American and Iranian users.
Regulators close in
Dubai's VARA is investigating Shelbit's alleged involvement in money laundering and Iranian sanctions evasion. The regulator ordered the exchange on July 24 to halt its unlicensed activity, saying the exposure it identified extends beyond consumer protection to cross-border transactions that could affect the integrity of the UAE financial system. The U.S. Treasury's Office of Foreign Assets Control said it is aware of the allegations and takes them very seriously, a spokesperson told Reuters.
The report did not identify who within Iran's government oversaw the operation or determine where much of the crypto ultimately ended up, Reuters said.
Sources: The Block, Crypto Briefing
Trading involves risk.
Risk Disclaimer
