A Reuters investigation reveals that Shelbit, an unlicensed Dubai crypto exchange run by Siavash Kayvanpour, processed at least $4 billion since May 2024 for an Iranian sanctions-evasion network. The network connected a 2,000-site illegal gambling ring fronted by Sasha Sobhani and Pooyan Mokhtari with Iran's central bank and IRGC-linked entities. At least $676 million reached Binance, mostly after Dubai's VARA first ordered Shelbit to halt operations in January 2025. US authorities are now reviewing the findings.
Shelbit sanctions-evasion operation
- ▪Shelbit, an unlicensed Dubai-based cryptocurrency exchange run by Siavash Kayvanpour, processed at least $4 billion in digital assets since May 2024.
- ▪Blockchain investigators traced at least $125 million from Iran's central bank and $20 million from an Iranian bitcoin mining operation to Shelbit.
- ▪Shelbit-linked wallets interacted directly with Iran's central bank, Nobitex, and wallets linked by the Israeli government to the Islamic Revolutionary Guard Corps.
Iranian gambling network infrastructure
- ▪Sasha Sobhani and Pooyan Mokhtari promoted the illegal gambling network and were convicted alongside Siavash Kayvanpour in an Iranian court in 2023.
- ▪The illegal Farsi-language gambling network at the center of the Shelbit investigation spans more than 2,000 websites offering slots, blackjack, and roulette.
Binance transaction flows
- ▪Approximately $540 million of the Shelbit-linked funds reached Binance after Dubai's Virtual Assets Regulatory Authority first fined Shelbit in January 2025.
- ▪At least $676 million in cryptocurrency flowed from Shelbit-linked wallets to Binance since May 2024.
- ▪Binance stated that Shelbit never held an account on its platform and that Binance investigated, froze, and reported associated user accounts to law enforcement.
VARA enforcement timeline
- ▪Dubai's Virtual Assets Regulatory Authority issued a cease-and-desist order against Shelbit on January 2, 2025, for operating without a license.
- ▪Dubai's Virtual Assets Regulatory Authority issued a Notice of Fines and cease-and-desist order against Shelbit on July 24, 2026, citing money laundering and terrorism financing.
Blockchain investigation methodology
- ▪TRM Labs and two anonymous blockchain investigative firms traced Shelbit's transactions using heuristic clustering and transaction-timing analysis.
OFAC designation implications
- ▪The United States Treasury Department and the Office of Foreign Assets Control are reviewing the Reuters findings to target Iranian regime-linked digital assets.
- ▪Under the Office of Foreign Assets Control's strict-liability standard, compliant exchanges face potential civil penalties for processing transactions from designated addresses.
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