US Sanctions Shelbit Cryptocurrency Exchange for Facilitating Iran-Linked Transactions

The US Treasury has imposed sanctions on Shelbit, a cryptocurrency exchange based in Dubai, for allegedly facilitating transactions worth millions of dollars for Iran's elite Islamic Revolutionary Guard Corps (IRGC) and other state-linked organizations.

A Reuters investigation found that Shelbit was at the center of a massive $4 billion Iranian sanctions evasion operation, which included moving cryptocurrency for Iran's central bank and prominent illegal gambling networks. The exchange was also linked to the IRGC by Israel.

The US Treasury has sanctioned Shelbit's founder, Siavash Kayvanpour, and associated companies for providing material support to the IRGC and Nobitex, Iran's largest cryptocurrency exchange. Despite claims of discontinued operations, Shelbit was penalized alongside Aban Tether, an Iran-based entity, for processing transactions for sanctioned entities.

The crackdown coincides with Dubai's regulatory alert on Shelbit for violating money laundering and terrorism financing laws. This move is part of a broader effort to curb Iranian illicit activities in the cryptocurrency space.