A Reuters investigation uncovered a vast network moving billions in cryptocurrency from Iran’s financial system through a Dubai-based exchange named Shelbit. Since May 2024, Shelbit processed at least $4 billion in digital assets, acting as a key channel for Iranian state-linked groups and illegal gambling operations to access global crypto markets.
One major client was a Farsi-language gambling ring operating over 2,000 websites, managed by convicted Iranian influencers Sasha Sobhani and Pooyan Mokhtari. Despite their 2023 convictions on illegal gambling charges, the operation continued funneling funds through Shelbit, with $250 million linked to these gambling sites alone. also Shelbit maintained ties to Nobitex, a sanctioned Iranian crypto platform, and entities connected to the Iranian Revolutionary Guard Corps (IRGC).
Blockchain data revealed approximately $676 million was transferred from wallets tied to Shelbit directly to Binance. Binance responded by stating Shelbit never held a direct account on its platform, claiming to have frozen and reported suspicious accounts after internal probes. Meanwhile, Dubai’s Virtual Assets Regulatory Authority (VARA) issued a cease-and-desist order against Shelbit in July 2026, citing unlicensed operations, money laundering, and potential terrorism financing related to the IRGC. VARA had been investigating Shelbit since 2025.
This development marks another chapter in Binance’s ongoing regulatory challenges. The exchange settled significant US sanctions violations in 2023, and its former CEO, Changpeng Zhao, pleaded guilty to anti-money-laundering offenses. The crackdown on Shelbit highlights persistent vulnerabilities in crypto’s role in sanctions evasion and money laundering.
