$4 Billion Sanctions Evasion Network Uncovered Through Dubai Crypto Exchange

A Reuters investigation has uncovered an Iranian sanctions evasion network that used a Dubai-based cryptocurrency exchange called Shelbit to process at least $4 billion in digital assets.

The exchange, which operates from an office in Dubai and is run by an expatriate Iranian without a license, has connections to the Islamic Revolutionary Guard Corps (IRGC), Iran's central bank, and Nobitex, an Iranian cryptocurrency exchange sanctioned by the US earlier this year.

Blockchain records show that tens of millions of dollars in cryptocurrency from a Farsi-language online gambling network have been transferred to Shelbit. The network, comprising over 2,000 websites, is fronted by two Iranian influencers with government connections and has access to Iran's online payments infrastructure, which is overseen by the country's central bank.

The investigation also found that Shelbit has interacted with wallets linked to the IRGC and has transferred hundreds of millions of dollars in cryptocurrency to major industry participants, including Binance. Some of the cryptocurrency reaching Shelbit originated from an Iranian bitcoin mining operation.