Dubai-Registered Exchange Funnels $4B in Crypto for Iranian Gambling Network
An unlicensed cryptocurrency exchange operating out of Dubai has processed at least $4 billion in crypto since May 2024, serving as the financial backbone for a sprawling network of over 2,000 Iranian gambling websites.
The operation represents one of the largest sanctions evasion schemes uncovered since 2016. The exchange, called Shelbit, was traced to have connections to the Iranian central bank and entities tied to the Islamic Revolutionary Guard Corps (IRGC).
A Reuters investigation laid out the mechanics of how the money moved through Shelbit, which converted and transferred crypto to access global financial markets that sanctions are designed to block.
$676 million in crypto transactions were traced directly from Shelbit to Binance, one of the world's largest exchanges. Binance has reportedly taken measures to freeze accounts connected to Shelbit transactions.