Shelbit's $4 Billion Iran Sanctions Evasion
Dubai Regulator Shuts Shelbit Over $4 Billion Iran Sanctions Evasion Scheme, Funds Migrated
Anonymous
Key Points
1
Binance reportedly received at least $676 million in Shelbit-linked funds since May 2024, with roughly $540 million arriving after Dubai's VARA fined Shelbit in 2025, illustrating how sanction-evading flows migrate to major exchanges even after enforcement actions.
2
Nobitex, the Iranian exchange that the U.S. has sanctioned since 2023, appears among the flows connected to Shelbit, highlighting how sanctioned platforms form part of a broader Iran-focused sanctions-evading network that also involves central-bank rails.
3
Iran legalized licensed Bitcoin mining in 2019, a development researchers point to as context for mining-linked wallets and flows detected within the Shelbit network.
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TRM Labs analyst John Wojcik described the Shelbit-linked gambling network as 'by far the biggest Iranian illegal gambling network ever discovered.'
A Dubai-based crypto exchange called Shelbit moved at least $4 billion in funds since May 2024, helping Iranian operators dodge international sanctions, according to Reuters. The unlicensed platform was run by Iranian expatriate Siavash Kayvanpour and was tied to an illegal gambling network spanning more than 2,000 websites.
Dubai's financial regulator ordered Shelbit to shut down on January 2, 2025. But the exchange kept operating for roughly 18 months afterward, according to TechTimes. The case shows how sanctions-evading networks often move rather than collapse when regulators strike.
$4 Billion Flowed Through an Unlicensed Dubai Exchange
Shelbit was never licensed to operate as a crypto exchange. Yet it processed at least $4 billion in transactions since May 2024, according to Cryptopolitan. TRM Labs analyst John Wojcik called the linked gambling network "by far the biggest Iranian illegal gambling network ever discovered."
The gambling operation ran across more than 2,000 websites. Shelbit processed at least $250 million directly tied to that network, according to Crypto Briefing. Two Iranian influencers helped drive customers to the platform. All three key figures — including Kayvanpour — were convicted in Iran in 2023 for illegal gambling.
Binance Received $676 Million Linked to Shelbit
Blockchain analysis traced at least $676 million in Shelbit-linked funds flowing to Binance since May 2024, according to Crypto Times. About $540 million of that arrived after Dubai regulators fined Shelbit in 2025. That timing shows how banned money flows shift to bigger platforms after enforcement hits smaller ones.
Binance said Shelbit did not hold an account with them. Ukrainian authorities and the U.S. Treasury have both acknowledged the investigation and said they are reviewing the claims, according to CryptoNews.
Iran's Central Bank and IRGC Wallets Appear in the Money Trail
Researchers found funds moving through Iran's central bank and through wallets linked to the Islamic Revolutionary Guard Corps, or IRGC, according to Crypto Briefing. The IRGC is a U.S.-designated terrorist organization. Money also flowed through Nobitex, an Iranian exchange that the U.S. sanctioned in 2023.
Iranian mining operations also appeared in the fund flows. Iran legalized licensed Bitcoin mining in 2019. Researchers say that legal mining framework gave cover for mining-linked wallets to move money within the broader sanctions-evading network.
Regulators Acted, but the Exchange Kept Running
Dubai's Virtual Assets Regulatory Authority, known as VARA, ordered Shelbit to halt all operations on January 2, 2025. The exchange ignored that order and kept running, according to TechTimes. The 18-month gap between the shutdown order and full closure shows how hard it is to stop unlicensed platforms.
The case is now drawing attention from multiple governments. U.S. and Ukrainian authorities are both reviewing the findings, according to Cryptopolitan. The Shelbit network shows how sanctioned states can use crypto exchanges, gambling sites, and mining operations together to move billions past international controls.
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