Binance Caught in Iran Sanctions Evasion Scandal

Binance has faced scrutiny after Reuters found that $676 million in Iran sanctions-evasion flows were traced to its wallets. The investigation discovered that an unlicensed Dubai exchange, Shelbit, processed at least $4 billion since May 2024 and was linked to Iranian gambling sites, the country's central bank, and entities tied to the Islamic Revolutionary Guard Corps.

The money flowed through Binance after Dubai's Virtual Assets Regulatory Authority (VARA) fined Shelbit in January 2025 for operating unlicensed. About $540 million of the funds moved after the fine was issued.

Binance disputed the figure, stating that Shelbit never held a direct account on the platform and that accounts tied to its users were investigated, frozen, and reported to law enforcement once identified.