$4B in Crypto Flows Through Unlicensed Dubai Exchange, Linked to Iran's IRGC

A sprawling network of over 2,000 Iranian gambling websites has been processing at least $4 billion in cryptocurrency since May 2024 through an unlicensed exchange called Shelbit operating out of Dubai. This operation represents one of the largest sanctions evasion schemes uncovered since 2016.

The exchange processed $676 million in crypto transactions directly to Binance, one of the world's largest exchanges, without being flagged and frozen immediately. Blockchain investigators traced connections to the Iranian central bank and entities tied to the Islamic Revolutionary Guard Corps (IRGC), turning a typical gambling bust into something with far broader geopolitical implications.

Dubai established the Virtual Assets Regulatory Authority (VARA) specifically to oversee digital asset activities, but Shelbit was processing billions since May 2024 before VARA issued a cease-and-desist order on July 24, 2026. This order followed earlier enforcement actions taken in 2025.