- Trending
- Comments
- Latest
A Dubai-based cryptocurrency exchange called Shelbit allegedly funneled at least $4 billion in crypto tied to Iran’s central bank, sanctioned entities, and a 2,000-site Farsi-language gambling network since May 2024, according to a Reuters investigation published July 31 that ties the operation to Iran’s Islamic Revolutionary Guard Corps.
The investigation, based on blockchain analysis, interviews with more than 30 sources, and data reviewed by Reuters, alleges that the Dubai-based exchange Shelbit served as the central hub for moving illicit funds into global cryptocurrency markets. Authorities in the United Arab Emirates are now investigating the exchange over alleged money laundering and sanctions violations, while U.S. officials say they are taking the allegations seriously.
Reuters reported that Shelbit, an unlicensed cryptocurrency exchange registered in Dubai’s Deira district, processed at least $4 billion in digital assets since May 2024. According to blockchain data reviewed by Reuters and analyzed by two cryptocurrency investigative firms alongside independent blockchain investigator Rich Sanders, the exchange handled funds linked to illegal gambling operations, Iran’s central bank, sanctioned entities, and suspected state-backed bitcoin mining activities.
The investigation describes Shelbit as the centerpiece of an expansive Iranian sanctions evasion operation that allegedly allowed sanctioned actors to gain access to international crypto markets.
Among Shelbit’s principal customers was a network of more than 2,000 Farsi-language gambling websites promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari. Reuters reported that both men, along with Shelbit founder Siavash Kayvanpour, were convicted in Iran in 2023 in connection with illegal gambling activities.
Although gambling is prohibited under Iranian law, Reuters found that the gambling platforms had access to Iran’s tightly regulated domestic payment infrastructure, which is overseen by the country’s central bank.
Reuters said it could not independently determine whether Iran’s Islamic Revolutionary Guard Corps (IRGC) directly controlled Shelbit or the gambling network, nor where much of the cryptocurrency ultimately ended up.
Blockchain investigator Rich Sanders told Reuters that the transaction patterns strongly suggested state involvement.
“It’s an IRGC operation, and that’s plain as day,” — Rich Sanders, independent blockchain researcher and investigator.
Former U.S. Treasury official Miad Maleki, who previously helped design sanctions evasion policy at the Office of Foreign Assets Control, said the findings reflected how illicit financial systems can become integrated into state operations.
“Ideology is the IRGC’s branding while profit is its business model. When it comes to gambling, the IRGC learned the Islamic Republic’s most lucrative lesson early: declare something illegal, then control both the prohibition and the black market,” — Miad Maleki, former Associate Director, U.S. Treasury’s Office of Foreign Assets Control.
John Wojcik, formerly with Infoblox and now a senior analyst at TRM Labs, described the operation as unprecedented in scale.
“This is by far the biggest Iranian illegal gambling network ever discovered and one of the biggest in the world,” — John Wojcik, Senior Analyst, TRM Labs.
Reuters also cited former Iranian officials and individuals previously associated with the IRGC, who alleged that the organization gradually assumed oversight of profitable online gambling enterprises as they expanded.
The Reuters investigation says Dubai’s Virtual Assets Regulatory Authority (VARA) has already taken enforcement action against Shelbit.
According to Reuters, VARA confirmed that it sanctioned Shelbit in 2025 for operating without the required license. On July 24, shortly after Reuters sought comment, the regulator issued a public notice ordering the exchange to immediately stop all unlicensed virtual asset activities, citing violations involving anti-money laundering and counter-terrorism financing rules.
Reuters reported that blockchain records indicate at least $676 million worth of cryptocurrency moved from Shelbit-linked wallets to Binance since May 2024.
Binance denied that Shelbit ever maintained a Binance account or had been sanctioned. However, the exchange did not dispute processing transactions associated with Shelbit.
In a statement to Reuters, Binance said:
“When users associated with Shelbit interacted with our platform, our compliance program operated as it should have: it investigated, froze the relevant accounts, and reported them to law enforcement.”
The company also said the transactions involving Shelbit were not considered high risk by an independent blockchain analytics firm.
Meanwhile, a spokesperson for the U.S. Treasury Department told Reuters the agency was aware of the allegations.
The spokesperson said the Office of Foreign Assets Control “is aware of these allegations and is taking them very seriously,” adding that Treasury has aggressively targeted Iranian regime-linked digital assets since President Donald Trump returned to office.
Reuters reported that Pooyan Mokhtari denied allegations that he was involved with the IRGC or Iranian military organizations. He also denied financing terrorism and said he had never used his influence to harm others.
Sasha Sobhani likewise denied any role in money laundering, sanctions evasion, or financing terrorism. He told Reuters his involvement with gambling websites was limited to paid social media promotions and that he had no knowledge of Shelbit or its founder.
Reuters said neither the Iranian government nor Shelbit founder Siavash Kayvanpour responded to requests for comment.
The findings underscore growing scrutiny of Iranian sanctions evasion through digital assets, particularly as regulators tighten oversight of cryptocurrency exchanges worldwide. If substantiated, the investigation would represent one of the largest documented Iranian sanctions evasion operations involving cryptocurrency since international sanctions intensified against Tehran.
Primary source: Reuters Special Report: Illicit Iranian gambling network helped pull off a $4 billion sanctions dodge (July 31, 2026).
Copyright © 2025 - The Bit Gazette.
