Reuters, citing U.S. investigators and independent researchers, reported that an Iranian-linked financial network, operating through the unlicensed Dubai-based cryptocurrency exchange Shelbit, has accumulated approximately $4 billion in funds. The report noted that this network connects illicit gambling platforms, sanctioned Iranian entities, and the global cryptocurrency market.
Shelbit is alleged to be at the center of a funding network.
The report states that Shelbit, operated by Iranian expatriate Siavash Kayvanpour, was a core node in this money transfer system. Investigators say that a large Dubai-based illegal gambling network was one of its main clients, involving more than 2,000 gambling platforms.
Reuters reports that Shelbit is accused of providing access to the global cryptocurrency market for the Central Bank of Iran and other sanctioned entities. The United States has imposed sanctions on the Central Bank of Iran since 2019 under its counterterrorism mandate, citing reasons including its support for the Islamic Revolutionary Guard Corps, the Quds Force, and Hezbollah.
Funds flow to large encryption platforms
The report mentions that Shelbit transferred hundreds of millions of dollars to several large crypto companies, including Binance. Binance told Reuters that Shelbit never held an account on its platform, and transactions related to Shelbit were not considered high-risk at the time.
Binance also stated that the platform subsequently investigated users associated with Shelbit, froze the relevant accounts, and has reported the matter to law enforcement.
- Exchanges involved: Shelbit, Binance, Nobitex
- Entities involved: Central Bank of Iran, sanctioned Iranian entities
- Funding size: Reuters reports approximately $4 billion in total.
Investigations point to Iranian sanctions circumvention via networks
Several researchers believe this is one of the largest Iranian sanctions circumvention networks discovered in recent years. John Wojcik, a senior analyst at TRM Labs, stated that this is the largest illegal Iranian gambling network discovered to date, and one of the largest of its kind globally.
Independent blockchain investigator Rich Sanders stated that Shelbit's connection to the Islamic Revolutionary Guard Corps is "very clear." However, Reuters also noted that it is currently impossible to confirm whether the Revolutionary Guard directly controls Shelbit or any related gambling networks.
The report also stated that Shelbit had direct interactions with the Central Bank of Iran, a wallet flagged by the Israeli government as having ties to the Revolutionary Guard, and the Iranian exchange Nobitex, which was sanctioned by the United States earlier this year. The two investigative firms also indicated that some of the crypto assets flowing into Shelbit originated from a Bitcoin mining operation in Iran.
Echoing recent law enforcement actions
Reuters compared this case to recent U.S. law enforcement actions against Iran. The report noted that in 2016, the U.S. dismantled a roughly $20 billion gold-for-oil network linked to the Revolutionary Guard in Turkey; and in May of this year, the U.S. seized $1 billion worth of crypto assets linked to Iran.
This incident once again demonstrates that the link between sanctions evasion, illegal gambling, and cross-border encrypted transfers is becoming a key focus for regulators and on-chain investigation companies.
