An unlicensed crypto exchange in Dubai served as the hub of a $4 billion money laundering operation benefiting Iran. A Reuters investigative report revealed that the platform, named Shelbit and run by Iranian national Siavash Kayvanpour, acted as a conduit connecting more than 2,000 illegal gambling platforms worldwide with Iran’s central bank and various US-sanctioned entities.
The scale of the operation makes it one of Iran’s largest sanctions evasion networks since US authorities dismantled a $20 billion gold-for-oil trade scheme in Turkey back in 2016. The case adds to mounting pressure on Iranian digital assets, following the US government’s seizure of $1 billion in crypto from the country in May 2026.
Hundreds of Millions Flowed to Binance
The illicit gambling funds did not merely circulate within a closed ecosystem. The report noted that hundreds of millions of dollars from Shelbit flowed out to several major crypto exchanges, including Binance. Binance stated that Shelbit never registered an account on its platform, and transactions linked to the Dubai exchange were not flagged as high risk when the transfers occurred.
As the investigation unfolded, Binance moved to freeze all user accounts affiliated with the network and reported its findings to law enforcement. John Wojcik, a former Infoblox analyst now at TRM Labs, assessed the operation as the largest Iranian illegal gambling network ever discovered, as well as one of the largest in the world. Crypto inflows into Shelbit did not stem solely from gambling, as a portion of the funds was traced back to Bitcoin mining facilities operating in Iran.
Funds Flowing to Military Entities
The $4 billion ultimately ended up at institutions under close international scrutiny. On-chain transaction trails proved that Shelbit interacted directly with Iran’s central bank, which has been on the US sanctions list under counter-terrorism regulations since 2019 for continuing to fund the Islamic Revolutionary Guard Corps (IRGC), the Quds Force, and Hezbollah.
Funds flowed toward several crypto wallets that the Israeli government says are directly controlled by the IRGC. Additionally, Nobitex - an Iranian crypto exchange sanctioned by the US earlier this year - also served as a transit point for transactions from the Shelbit network. Independent blockchain researcher Rich Sanders bluntly concluded that the operation was orchestrated by the IRGC, although the Reuters report noted it could not determine the exact extent of the Iranian military’s control over the Dubai exchange.
When money from gamblers worldwide ends up in the hands of military forces, major exchange operators can no longer hide behind claims of a lack of risk indicators. Provenance tracking of assets will face growing demands to look deeper, as illicit funds consistently find entry points through intermediaries that slip past oversight.
Reported via CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
