Shelbit Exposed: $4B Illicit Gambling Operation Rocks Crypto Market

A Reuters investigation has uncovered a massive illegal gambling operation that processed over $4 billion through Shelbit, an unlicensed Dubai-based cryptocurrency exchange. The operation, which spans over 2,000 platforms, funneled at least $250 million to these sites. Shelbit's network is alleged to connect to Iran's sanctioned Central Bank and to wallets associated with the Islamic Revolutionary Guard Corps.

The investigation found that flows from Shelbit reached major cryptocurrency platforms including Binance, which has denied holding an account with Shelbit and has taken steps to freeze associated accounts. The U.S. Treasury confirmed it is reviewing the allegations, which could lead to formal designations under the Office of Foreign Assets Control.

Shelbit's operator, Siavash Kayvanpour, was convicted in absentia in Iran in 2023 for illegal gambling activities. An OFAC designation for Shelbit or connected entities would require every compliant exchange globally to immediately block associated wallets, potentially affecting the broader market.