Dubai-Based Shelbit Accused of Facilitating $4 Billion in Iranian Sanctions Evasion

A major controversy has erupted surrounding Shelbit, an unlicensed digital asset exchange based in Dubai. According to allegations, Shelbit served as a key funding conduit for a large-scale Iranian sanctions evasion network.

Reuters reported that Shelbit processed at least $4 billion in digital assets since May 2024, connecting over 2,000 illegal gambling sites, the Central Bank of Iran, and entities sanctioned by the United States to the global digital asset market.

The exchange is allegedly operated by Iranian national Siavash Kayvanpour. Blockchain analytics firms have detected evidence that Shelbit directly transacted funds with wallets linked to the Central Bank of Iran and the Islamic Revolutionary Guard Corps (IRGC), as well as Nobitex, an Iranian exchange sanctioned by the U.S.

The Dubai Virtual Assets Regulatory Authority (VARA) has launched an investigation into Shelbit's suspected involvement in money laundering and Iranian sanctions evasion. Binance stated that Shelbit never held an account on its platform and that transactions associated with Shelbit were not classified as high-risk.