A Dubai-based cryptocurrency exchange allegedly processed at least $4 billion for an Iranian gambling and sanctions-evasion network, connecting more than 2,000 Farsi-language gambling sites with global crypto markets. The case highlights the persistent challenge of tracking illicit financial flows through cryptocurrency intermediaries, even in jurisdictions building formal regulatory frameworks.

Blockchain investigators traced funds between the exchange, Shelbit, Iran's central bank, sanctioned entities, bitcoin miners, and Binance-linked addresses. Dubai regulators have since ordered Shelbit to cease all unlicensed virtual asset activity. Several individuals tied to the network have denied involvement in money laundering, sanctions evasion, or Iranian state operations.

Shelbit Processed Billions Through Dubai

Shelbit began processing funds in May 2024 and handled at least $4 billion, according to blockchain data. The exchange operated without a public-facing platform and no longer maintains an active website.

Its registered office was located above a budget hotel in Dubai's Deira district. People working at that address said they had never heard of the company.

Iranian expatriate Siavash Kayvanpour founded Shelbit and had previously faced an illegal gambling case in Iran. Iranian courts convicted him in 2023 for assisting gambling operators Sasha Sobhani and Pooyan Mokhtari. Shelbit processed at least $130 million for one gambling site linked to the wider network. Investigators also traced tens of millions of dollars from related betting platforms into Shelbit-controlled wallets.

Gambling Sites Connected to Iranian Payments

The gambling network included more than 2,000 websites offering slots, roulette, blackjack, and other online games. Sobhani and Mokhtari promoted several of these sites through social media accounts showcasing luxury cars, private jets, hotels, and parties.

Both men denied owning the platforms or knowing Kayvanpour and Shelbit. They also rejected claims linking their work to Iranian state institutions.

Iran bans gambling and punishes violations with prison terms and lashes. However, several sites within the network accepted payments through Iran's tightly controlled banking system. Former Iranian officials said large-scale gambling operations required access to domestic bank cards and electronic transfers.

Funds Reached Sanctioned Iranian Entities

Shelbit interacted with Iran's central bank, the sanctioned Nobitex exchange, and wallets that Israel linked to the Islamic Revolutionary Guard Corps (IRGC). Investigators also traced money from an Iranian bitcoin mining operation into Shelbit. The exchange processed at least $125 million tied to Iran's central bank. Iran has legalized and regulated domestic cryptocurrency mining, and its central bank has permitted limited use of mined digital assets for imports.

Investigators could not confirm whether the IRGC directly controlled Shelbit or the gambling network. They also could not determine the final destination of much of the cryptocurrency involved.

Former Iranian insiders said the IRGC had taken control of major gambling businesses years earlier, using those sites to connect financial channels inside Iran with markets abroad.

Dubai Regulator Orders Shelbit to Cease Operations

Dubai's Virtual Assets Regulatory Authority (VARA) had already acted against Shelbit in 2025 for operating without a license. On July 24, VARA ordered the company to cease all unlicensed virtual asset activity, citing money-laundering, terrorism-financing, and cross-border transaction concerns. The regulator also began reviewing Kayvanpour and other individuals connected to the wider operation. VARA, established in 2022 as one of the first dedicated virtual-asset regulators globally, has issued multiple cease-and-desist orders against unlicensed firms as the UAE seeks to position Dubai as a compliant crypto hub.

Blockchain data traced at least $676 million from Shelbit-linked addresses to Binance since May 2024. Binance stated that Shelbit never held an account on its platform. The company said users connected to Shelbit triggered compliance reviews, and that it froze relevant accounts and reported them to law enforcement.

The UAE stated it follows strict international standards and works with partners against illicit financial flows. The U.S. Treasury Department said it was aware of the allegations and treated them seriously. VARA's notice did not name Sobhani or Mokhtari in its action.