In the Deira neighborhood of Dubai, an unremarkable office has emerged as the central hub for a sophisticated and expansive sanctions-evasion operation. Known as Shelbit, this platform has facilitated the processing of over $4 billion in cryptocurrency since May 2024, with its operator being Siavash Kayvanpour, an Iranian expatriate.
How does the operation function? More than 2,000 illegal gambling sites, primarily aimed at Iranian users, serve as the financial backbone of this network. These gambling sites exist in a precarious legal area due to Iran's prohibition of gambling, creating significant risk for the people operating them. They connected to Iran's central bank payment systems for processing deposits, enabling the flow of funds from numerous transactions.
Shelbit acted as an unlicensed cryptocurrency exchange that processed funds from these gambling platforms. Blockchain investigators have successfully traced approximately $676 million in transactions that can be followed from Shelbit to Binance, the leading cryptocurrency exchange globally. The total amount processed through Shelbit stands at $4 billion, but only $676 million has been verified through available blockchain data.
Investigation results reveal connections within this network extending beyond gambling revenue. Links to Iran’s central bank and wallets tied to the Islamic Revolutionary Guard Corps have been uncovered. The United States designates this group as a foreign terrorist organization, raising further concerns about the implications for involved parties.
What regulatory actions have taken place? In light of these alarming discoveries, the Virtual Assets Regulatory Authority of Dubai issued a cease-and-desist order against Shelbit on July 24, 2026, just a week before these findings were made public. The order focused on potential money laundering activities and highlighted the unlicensed status of Shelbit.
Additionally, Iranian social media influencers located outside Iran, such as Sasha Sobhani and Pooyan Mokhtari, have been implicated as promoters of the gambling sites. Both individuals are now facing legal repercussions.
The financial implications for exchanges and investors are significant. The traceable $676 million tied to Binance will likely draw scrutiny from regulators. Binance has spent substantial time working to restore its regulatory standing following a settlement with U.S. authorities in 2023. The newly released connections to the IRGC could further complicate these efforts as the U.S. Treasury targets assets linked to the Iranian regime. Any exchanges involved in processing transactions associated with flagged wallets, even unintentionally, may face considerable legal exposure due to Treasury designations and secondary sanctions.