Dubai Crypto Firm Exposed as Money Pipeline for Illicit Iranian Betting Ring

A Dubai-based cryptocurrency exchange called Shelbit processed at least $4 billion in funds for an Iranian gambling network, according to Reuters. The money moved through tens of millions of dollars' worth of transactions on Shelbit's platform, which was not licensed to operate in the UAE. This illicit activity raises concerns about money laundering and terror financing.

The Iranian gambling operation spanned over 2,000 websites and involved prominent gambling sites within Iran that were taken over by the Islamic Revolutionary Guard Corps (IRGC). Shelbit's connections to these entities are still unclear, but blockchain data indicates ties to Iran's central bank and Nobitex, a sanctioned exchange. The platform also received funds from an Iran-based bitcoin-mining operation.

Binance, the largest crypto trading platform, was involved in some of the transactions, with at least $676 million moving from Shelbit-connected addresses to Binance since May 2024. However, Binance stated that Shelbit never maintained an account on their platform and froze relevant accounts after reviewing them.