Dubai-based crypto exchange tied to $4 billion Iran sanctioned-evasion network

A large Dubai-based illegal gambling network is reportedly funneling millions of dollars in cryptocurrency through Shelbit, an unlicensed crypto exchange at the center of a $4 billion Iranian sanctions-evasion scheme, according to a Reuters report. Shelbit is operated by Iranian expatriate Siavash Kayvanpour and is alleged to have moved hundreds of millions of dollars via major crypto platforms, providing access to global markets for Iran’s central bank and other sanctioned entities.

U.S. and independent investigators link the operation closely to Iran’s Islamic Revolutionary Guard Corps (IRGC), the country’s most powerful military, political, and economic institution. However, Reuters noted it could not confirm direct IRGC control over Shelbit or the related gambling network. The gambling network itself runs over 2,000 platforms and is described by John Wojcik, a senior analyst at TRM Labs, as one of the world’s largest illegal gambling operations.

Shelbit has interacted with major crypto companies including Binance, though Binance stated it never had an account for Shelbit and said transactions associated with it were not deemed high risk. Binance also reported freezing related accounts and notifying law enforcement. Shelbit has also engaged with Iran’s central bank, wallets connected to the IRGC according to Israeli government sources, and Nobitex, an Iranian exchange recently sanctioned by the U.S. government.

This development is significant as it is considered one of the largest Iranian sanctions-evasion networks uncovered since at least 2016, highlighting ongoing efforts linked to the IRGC and sanctioned Iranian institutions to circumvent international restrictions. The IRGC, established in 1979 and directly answerable to Iran’s supreme leader, is also tied to other sanctions involving Hezbollah and the Quds Force. The case underscores the complex use of cryptocurrency in illicit schemes connected to geopolitical sanctions.