Dubai-Based Crypto Exchange Facilitates $4 Billion Sanctions Evasion Operation for Iran

Iran's illicit gambling network has been helping the country evade sanctions by moving millions of dollars in cryptocurrency through an office in Dubai. The operation, which involves a network of over 2,000 websites and two high-profile influencers with ties to the Iranian government, has processed at least $4 billion since May 2024.

The exchange, Shelbit, is run by an expatriate Iranian and has moved hundreds of millions of dollars in cryptocurrency to prominent players in the market, including Binance. The network also interacts directly with Iran's central bank and wallets linked to the Islamic Revolutionary Guard Corps (IRGC).

Reuters investigation found that the IRGC took control of the largest gambling websites accessible inside Iran years ago and has since used them to move money abroad. The operation is one of the biggest Iranian sanctions evasion networks discovered since 2016, when a $20 billion gold-for-oil operation based out of Turkey was broken up.

The UAE authorities are investigating Shelbit's alleged role in helping Iran launder money and evade sanctions. VARA confirmed that both it and the Dubai Department of Economy and Tourism had taken enforcement action against Shelbit for operating without a license.