Dubai Crypto Exchange Linked to $4 Billion Iranian Sanctions Evasion Scheme

An unlicensed Dubai based crypto exchange called Shelbit has been identified as a central hub for moving billions of dollars in Iranian funds, according to an investigation drawing on blockchain data and interviews with more than 30 sources.

Gambling Network Tied to Central Bank

Shelbit has processed at least $4 billion since May 2024, connecting a Farsi-language gambling network of more than 2,000 websites to Iran’s central bank and other sanctioned entities. The network is fronted by two Iranian influencers who promote the sites through lavish social media content, despite gambling being illegal in Iran. Investigators say the gambling operation has direct access to Iran’s state-controlled payment system.

Funds Reached Binance and Mining Operations

According to the Reuters investigation Blockchain records show Shelbit sent at least $676 million to Binance, the world’s largest crypto exchange, with much of that moving even after Dubai regulators fined Shelbit for operating without a license. Analysts also traced funds from a suspected Iranian bitcoin mining operation flowing through Shelbit. Dubai’s Virtual Assets Regulatory Authority has since ordered Shelbit to halt all unlicensed activity, citing money-laundering and terrorism-financing concerns.

Binance Response

Binance said Shelbit never held an account with the platform and was not sanctioned, adding that its compliance team froze related accounts once flagged.