Binance Linked to Iranian Sanctions Evasion and Gambling Operations
A recent investigation by Reuters has uncovered a significant sanctions-evasion network linking Tehran's financial system to Binance, one of the world's largest cryptocurrency exchanges. Central to this operation is Shelbit, an unlicensed crypto exchange based in Dubai, which has processed at least $4 billion in digital assets since May 2024. Shelbit acted as a financial conduit between Iranian state-linked entities and illegal gambling operations, facilitating transactions to major global crypto markets.
Among its notable clients was a Farsi-language gambling network that operated over 2,000 websites. This network was managed by influencers Sasha Sobhani and Pooyan Mokhtari, both of whom were convicted in Iran for illegal gambling in 2023. Despite their convictions, the gambling operation continued, with Shelbit processing at least $250 million specifically linked to these sites.
The investigation also highlighted Shelbit's connections to Nobitex, a sanctioned Iranian crypto platform, and entities associated with the Iranian Revolutionary Guard Corps (IRGC). Blockchain analysis revealed that approximately $676 million was transferred from wallets linked to Shelbit to Binance during the investigation period.
In response to the findings, Binance confirmed that Shelbit did not maintain a direct account with them. The exchange stated that it had conducted internal investigations and took action by freezing and reporting any accounts associated with the network.
On July 24, 2026, Dubai's Virtual Assets Regulatory Authority (VARA) issued a cease-and-desist order against Shelbit, citing unlicensed activities, money laundering, and potential terrorism financing linked to the IRGC. VARA had initiated earlier enforcement actions against Shelbit as early as 2025.
This scrutiny is not new for Binance, which reached a settlement with U.S. authorities in 2023 over sanctions-related issues. The former CEO, Changpeng Zhao, pleaded guilty to anti-money-laundering violations, indicating ongoing regulatory challenges for the exchange. VARA's aggressive stance in issuing a cease-and-desist order, particularly with language related to terrorism financing, marks a notable shift for a jurisdiction that has actively sought to attract crypto businesses.
