Dubai Crypto Exchange Allegedly Aids Iran in Sanctions Evasion

A cryptocurrency exchange operating out of Dubai, known as Shelbit, has reportedly facilitated the processing of over $4 billion in digital assets as part of an Iranian sanctions evasion scheme, according to a Reuters investigation. The exchange is run by an expatriate Iranian and operates without a license from an office in Dubai. Investigators have linked Shelbit to a Farsi-language online gambling network that consists of more than 2,000 websites, which is fronted by two Iranian influencers with ties to the government. Both influencers and the operator of Shelbit were convicted in Iran in 2023 for their involvement in illegal gambling activities.

Despite the prohibition of gambling in Iran, which carries severe penalties, the gambling network reportedly has access to the country's online payments infrastructure, managed by the central bank. Blockchain records indicate that tens of millions of dollars in cryptocurrency have been traced from this gambling network to Shelbit. Since May 2024, investigators estimate that the exchange has processed at least $4 billion.

Shelbit has also been implicated in transferring hundreds of millions of dollars in cryptocurrency to major industry players, including Binance. Furthermore, the investigation revealed that the exchange has interacted with wallets linked to the Islamic Revolutionary Guard Corps (IRGC), Iran's central bank, and Nobitex, an Iranian cryptocurrency exchange that was sanctioned by the United States earlier this year. Some of the cryptocurrency flowing into Shelbit has been traced back to an Iranian bitcoin mining operation, as identified by the investigative firms.

The findings of this investigation are based on interviews with over 30 individuals, including former members of the IRGC, a former government official, and senior Iranian insiders who possess direct knowledge of the alleged operations surrounding Shelbit and its connections to the broader sanctions evasion network.