A recent Reuters investigation has unveiled a complex sanctions-evasion network that connects Tehran’s financial system to a major cryptocurrency exchange. This network centers around Shelbit, a Dubai-based and unregulated crypto exchange, which processed over $4 billion in digital assets from May 2024 onward. It served as a conduit between Iranian state-associated entities, illegal gambling operations, and global crypto markets.
#How Does This Network Operate?
The operation's spine is a massive Farsi-language gambling network comprising over 2,000 websites. This network was spearheaded by Sasha Sobhani and Pooyan Mokhtari, who were previously convicted of illegal gambling in Iran in 2023. Even after their convictions, these operations continued unabated, with Shelbit routing at least $250 million associated with this gambling activity.
Additionally, Shelbit reportedly maintained ties to Nobitex, another Iranian crypto platform under sanctions, as well as yearnings linked to the Iranian Revolutionary Guard Corps.
Blockchain analysis from the Reuters investigation has shown that around $676 million transited from wallets connected to Shelbit to Binance during the scrutiny period.
#What Is Binance's Stance on the Matter?
While Binance confirmed that Shelbit never held a direct account with their exchange, the company asserted that it conducted internal investigations into any accounts linked to this network, freezing and reporting suspicious activity as necessary.
In response to these developments, Dubai’s Virtual Assets Regulatory Authority issued a cease-and-desist order against Shelbit on July 24, 2026, due to unlicensed activities, money laundering, and possible terrorism financing connections to the IRGC. Enforcements against Shelbit had reportedly begun as early as 2025.
#Why Do Such Revelations Matter?
The implications for Binance are significant. This is not their first brush with scrutiny regarding sanctions. The exchange previously settled a case with US authorities in 2023, and its former CEO has pleaded guilty to anti-money laundering violations.
The aggressive move by VARA to act against Shelbit, especially with references to terrorism financing associated with the IRGC, underscores a growing global emphasis on comply with emerging regulations in the cryptocurrency space.
This investigation emphasizes the intricate connections within international crypto markets and how they can overlap with illicit activities, affecting both regulatory landscapes and investor confidence.