Shelbit, a little-known crypto exchange based in Dubai, processed $250 million for an illegal Iranian gambling network, part of $4 billion in total transactions since May 2024, a Reuters investigation found. The platform, run by Iranian expatriate Siavash Kayvanpour, played a central role in a sprawling sanctions-evasion scheme involving over 2,000 gambling sites.
Despite operating without a license and maintaining a low profile with no public website and a modest office in Dubai’s Deira district, Shelbit’s influence extended deep into the crypto world. The network’s funds reportedly passed through major cryptocurrency platforms, including Binance, which denied having an account with Shelbit and stated it took action to freeze related accounts.
The U.S. Treasury is now reviewing these allegations, which suggest connections between Shelbit’s network and Iran’s sanctioned Central Bank, as well as wallets linked to the Islamic Revolutionary Guard Corps. While direct IRGC involvement hasn't been confirmed, financial data examined by Reuters points strongly to the link. Kayvanpour and two associates tied to the gambling operation were convicted in absentia in Iran back in 2023.
This case highlights ongoing risks of unlicensed crypto exchanges facilitating illicit activities and evading sanctions. Moves by the U.S. Treasury could lead to formal restrictions that force compliant exchanges worldwide to cut off ties with Shelbit and related entities.
This article is for informational purposes only and does not constitute financial advice.
