Dubai Exchange Accused of Facilitating $4B Iranian Sanctions Evasion
A Reuters investigation has uncovered an alleged $4 billion Iranian sanctions-evasion operation involving unlicensed Dubai crypto exchange Shelbit. Blockchain data reviewed by Reuters revealed that Shelbit's largest customer base consisted of over 2,000 Farsi-language online gambling sites promoted by dozens of social media influencers.
The Revolutionary Guards effectively took control of Iran's online gambling sector years ago, allowing the banned industry to generate revenue while relying on Iran's tightly controlled payment infrastructure. This arrangement allowed the industry to evade sanctions imposed by the US and other countries.
Blockchain analysis showed at least $676 million flowing from Shelbit to Binance since May 2024, including hundreds of millions after Dubai regulators penalized the exchange for operating without authorization. Following Reuters' inquiries, Dubai's regulator issued a cease-and-desist order, while Binance stated that the transactions had not been identified as high risk by external screening tools and that some accounts had been frozen and reported.
US Treasury officials said they were reviewing the allegations, indicating potential implications for international sanctions evasion efforts.