A Reuters investigation alleges that a Dubai-based cryptocurrency exchange processed at least $4 billion for an Iranian sanctions evasion network linked to online gambling, bitcoin mining, and entities connected to the Islamic Revolutionary Guard Corps (IRGC).
A Dubai-based cryptocurrency exchange allegedly processed at least $4 billion in digital assets as part of a sophisticated Iranian sanctions evasion network, according to a Reuters investigation citing blockchain data and multiple cryptocurrency forensic experts.
The exchange, identified as Shelbit, reportedly operates from Dubai without a license and is managed by an expatriate Iranian. Reuters said its findings were based on blockchain analysis conducted by two cryptocurrency investigative firms and an independent blockchain analyst.
Alleged Links to Gambling Network
The investigation found that one of Shelbit's primary customers was a massive Farsi-language online gambling network consisting of more than 2,000 websites. The network is reportedly associated with two Iranian influencers said to have government connections. Reuters noted that both individuals, along with Shelbit's operator, were convicted in Iran in 2023 in connection with an illegal gambling case.
Although gambling is banned under Iranian law, Reuters reported that the network allegedly maintained access to Iran's online payment infrastructure, which is overseen by the country's central bank.
Billions in Cryptocurrency Transactions
Blockchain records reviewed during the investigation allegedly traced tens of millions of dollars in cryptocurrency from the gambling operation to Shelbit. Investigators estimate the exchange has processed at least $4 billion in cryptocurrency since May 2024.
Reuters also reported that Shelbit transferred hundreds of millions of dollars in cryptocurrency through major industry platforms, including Binance.
Connections to Sanctioned Iranian Entities
The investigation alleges that Shelbit interacted with cryptocurrency wallets linked by the Israeli government to Iran's Islamic Revolutionary Guard Corps (IRGC), Iran's central bank, and Nobitex, an Iranian cryptocurrency exchange sanctioned by the United States earlier this year.
Investigators further reported that part of the cryptocurrency reaching Shelbit originated from an Iranian bitcoin mining operation.
Extensive Investigation
Reuters said its investigation relied on interviews with more than 30 individuals, including former IRGC affiliates, a former Iranian government official, senior insiders familiar with the alleged network, and other sources with direct knowledge of its operations.
If confirmed, the findings would highlight another method allegedly used by Iran-linked networks to move billions of dollars outside the traditional financial system despite international sanctions.
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