An illicit Iranian gambling network allegedly channelled at least $4 billion through Shelbit, an unlicensed cryptocurrency exchange based in Dubai, according to a Reuters investigation. Blockchain data reviewed by the news agency indicates the platform also processed transactions linked to sanctioned Iranian entities.
The investigation found that Shelbit facilitated payments for a Farsi-language gambling network spanning more than 2,000 websites. Blockchain records further showed interactions between the exchange and wallets associated with Iran’s central bank, the sanctioned crypto platform Nobitex, and digital wallets that Israeli authorities have linked to the Islamic Revolutionary Guard Corps (IRGC).
Reuters traced tens of millions of dollars flowing from the gambling network through Shelbit and reported that at least $676 million was transferred from wallets connected to the exchange to Binance, the world’s largest cryptocurrency exchange, since **May 2024.
Transactions Linked to Sanctioned Entities
According to Reuters, Shelbit processed at least $125 million tied to Iran’s central bank and also received funds from what blockchain investigators described as an Iranian bitcoin-mining operation.
The exchange was also linked to transactions involving gambling platforms promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari. Both denied any knowledge of Shelbit or involvement in sanctions evasion, money laundering or transactions conducted on behalf of Iranian state institutions.
Reuters also reported that the IRGC had previously taken control of several gambling websites accessible within Iran and used them to move funds overseas. However, the investigation said it could not determine whether the IRGC directly controlled Shelbit or the wider gambling network, nor establish the ultimate destination of much of the money.
Dubai Regulator Orders Operations to Stop
Dubai’s Virtual Assets Regulatory Authority (VARA) said it had previously taken enforcement action against Shelbit for operating without a licence. On July 24, the regulator ordered the exchange to cease all unlicensed activities, citing concerns over money laundering, terrorist financing and cross-border financial transactions.
Reuters reported that Shelbit’s registered office was located above a budget hotel in Dubai, where individuals working at the address said they were unfamiliar with the company. The exchange’s website is no longer operational, and there appears to be no public access to its services.
Binance Responds
Binance said Shelbit had never maintained an account on its platform and stated that transactions associated with the exchange were not initially classified as high risk. The company added that relevant accounts were later investigated, frozen and reported to law enforcement authorities.
Shelbit founder Siavash Kayvanpour, the Iranian government and the IRGC did not respond to Reuters’ requests for comment, according to the report.
