Overview
- A Reuters investigation published July 31, 2026, found an unlicensed Dubai exchange processed about $4 billion in crypto flows that investigators link to a large Farsi‑language online gambling ecosystem and sanctioned Iranian actors.
- Dubai’s Virtual Assets Regulatory Authority issued a cease‑and‑desist order and fines against the exchange on July 24 for operating without a licence and failing Know‑Your‑Customer rules.
- Blockchain analysis and interviews show the network routed hundreds of millions of dollars from the gambling sites to major global exchanges and traced flows to wallets tied to Iran’s central bank, addresses linked by others to the IRGC, and the sanctioned Iranian platform Nobitex.
- The operation’s gambling arm spans more than 2,000 Farsi‑language sites fronted by two influencers convicted in Iran in 2023, and investigators say the exchange began handling large volumes from May 2024.
- The probe is based on blockchain forensics and more than 30 interviews, and the U.S. Treasury’s Office of Foreign Assets Control is reviewing the findings which could lead to formal designations, forced freezes, and broad compliance measures by exchanges worldwide.