Overview
- A Reuters investigation published July 31 found that Shelbit, an unlicensed Dubai-based crypto exchange, processed at least $4 billion in cryptocurrency flows since May 2024 for a Farsi-language online gambling network and wallets linked to sanctioned Iranian entities.
- Dubai’s Virtual Assets Regulatory Authority issued a cease-and-desist order and monetary fines for Shelbit on July 24 for operating without a license and failing basic know-your-customer checks.
- Shelbit is run by Iranian expatriate Siavash Kayvanpour, who was convicted in Iran in 2023 in the same illegal gambling case that implicated influencers Sasha Sobhani and Pooyan Mokhtari.
- Blockchain tracing shows hundreds of millions of dollars were routed from Shelbit to major exchanges, including funds that reached Binance and addresses tied to the Islamic Revolutionary Guard Corps and Iran-linked platforms.
- The U.S. Treasury and OFAC have confirmed they are reviewing the findings, which could lead to asset designations or enforcement that would force exchanges worldwide to block or unwind linked wallets and transactions.