$4 Billion Iranian Sanctions Dodge Facilitated by Unlicensed Crypto Exchange

An illicit Iranian gambling network helped facilitate at least $4 billion in transactions through an unlicensed Dubai-based cryptocurrency exchange called Shelbit. Blockchain data reviewed by Reuters showed that Shelbit processed funds for a Farsi-language gambling network spanning over 2,000 websites.

The investigation found that Shelbit interacted with Iran's central bank, the sanctioned Iranian exchange Nobitex, and wallets linked to the Islamic Revolutionary Guard Corps (IRGC). Tens of millions of dollars from the gambling network moved through Shelbit, with at least $676 million flowing into Binance, the world's largest crypto exchange, since May 2024.

Binance stated that Shelbit never held an account on its platform and initially did not judge transactions associated with it to be high risk. The relevant accounts were later investigated, frozen, and reported to law enforcement.