Iran's $4B Sanctions-Evasion Network Exposed

A $4 billion sanctions-evasion network has allegedly been used by Iran to move money through online gambling operations, cryptocurrency transactions, and an unlicensed Dubai-based crypto exchange. The operation centered on Shelbit, a Dubai-based cryptocurrency exchange that investigators say acted as a financial hub linking Iran's central bank, a Farsi-language gambling network comprising more than 2,000 websites, suspected state-backed bitcoin mining operations, and major international crypto exchanges.

Blockchain data reviewed by Reuters showed Shelbit processed at least $4 billion in cryptocurrency since May 2024, including hundreds of millions of dollars routed to Binance, the world's largest crypto exchange. Shelbit interacted directly with Iran's central bank and with wallets linked to the Islamic Revolutionary Guard Corps.

The IRGC has played a pivotal role in keeping the economy afloat and funding Iran's military capabilities. 'When it comes to gambling, the IRGC learned the Islamic Republic's most lucrative lesson early: declare something illegal, then control both the prohibition and the black market,' said Miad Maleki, who helped design US sanctions policy on Iran at the Treasury Department's Office of Foreign Assets Control.