Dubai Crypto Exchange Shelbit Processes $4B Through Sanctioned Network

A Reuters investigation has uncovered that Shelbit, a Dubai-based cryptocurrency exchange operating without a license, processed at least $4 billion in transactions since May 2024 through a network linked to Iranian online gambling operations and sanctioned entities.

The network included wallets associated with Iran's Islamic Revolutionary Guard Corps (IRGC) and other sanctioned entities identified by Israeli authorities. Shelbit was fined on July 24 by Dubai's Virtual Assets Regulatory Authority (VARA) for continuing to operate without a license despite a cease-and-desist order issued in January 2025.

The regulator's enforcement action involved potential violations related to anti-money laundering (AML) and terrorism financing. The investigation highlights concerns over the lack of regulation in the cryptocurrency sector, particularly in regions with complex geopolitical relationships.