Shelbit linked to $4B illicit Iranian gambling network, report finds

An unlicensed cryptocurrency exchange operating out of Dubai has processed at least $4 billion for an Iranian gambling network and sanctioned institutions, according to a Reuters investigation. The exchange, called Shelbit, doesn’t even have a public website. Yet it managed to move more money in roughly a year than most licensed platforms see in a decade.

Shelbit is operated by Iranian expatriate Siavash Kayvanpour, who was convicted in an Iranian court in 2023 for his involvement in the country’s illegal gambling industry. The exchange has been active since May 2024, and in that time it has become what investigators describe as a crucial node in Iran’s sanctions evasion infrastructure.

The gambling pipeline

The network behind Shelbit is tied to more than 2,000 Farsi-language online gambling sites. In Iran, gambling is illegal.

The gambling operation is fronted by two convicted influencers: Sasha Sobhani and Pooyan Mokhtari. Both were found guilty alongside Kayvanpour in the 2023 Iranian court case over their roles in the illegal gambling ecosystem.

The gambling network reportedly has access to Iran’s central bank-controlled domestic payment systems. That means money flowing through Shelbit wasn’t just serving a rogue gambling ring. It was touching the same financial rails used by sanctioned state institutions, including operations linked to the Islamic Revolutionary Guard Corps.

Crypto investigative firms and researcher Rich Sanders helped trace the flow of funds, which reportedly included hundreds of millions in cryptocurrency routed to major exchanges, notably Binance. Some of those funds were associated with wallets linked to the IRGC and Nobitex, a sanctioned Iranian exchange.

Regulators are circling

Dubai’s Virtual Assets Regulatory Authority, known as VARA, issued a cease-and-desist order and monetary fines against Shelbit General Trading L.L.C. on July 24, 2026, for operating without a license and failing to comply with Know Your Customer regulations.

The US Treasury Department has confirmed its awareness of the allegations. The Office of Foreign Assets Control is reviewing the situation and has signaled it is taking measures to target Iranian regime-linked digital assets.

For Binance, the situation adds another layer to an already complicated compliance history. The exchange has faced scrutiny from multiple regulators globally and paid a $4.3 billion settlement with US authorities in 2023. Having hundreds of millions in funds from an unlicensed exchange linked to Iranian sanctions evasion land on its platform is not exactly the clean bill of health it’s been working toward.

What this means for the broader market

When OFAC gets involved, the consequences tend to ripple outward. Tornado Cash is the obvious precedent: a Treasury designation didn’t just shut down one protocol, it forced every compliant platform to blacklist associated wallets. If OFAC designates Shelbit-linked addresses, any exchange that has touched those funds could face compliance headaches, forced disgorgements, or worse.

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