Shelbit Processed $4 Billion Linked to Iran, Sent $676M to…

How Did Shelbit Process At Least $4 Billion?

Dubai-based cryptocurrency exchange Shelbit processed at least $4 billion after beginning operations in May 2024, according to blockchain analyses that linked the platform to Iranian gambling sites, the country’s central bank and wallets associated with sanctioned entities. The unlicensed exchange was operated by Iranian expatriate Siavash Kayvanpour and appears to have served as a settlement hub between several parts of the network. Investigators traced tens of millions of dollars from more than 2,000 Farsi-language gambling websites promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari. Shelbit-linked wallets also interacted directly with Iran’s central bank, the Nobitex exchange and addresses that Israel has associated with the Islamic Revolutionary Guard Corps. Researchers identified at least $125 million received from the central bank and another $20 million originating from a suspected Iranian Bitcoin mining operation. The available blockchain evidence does not establish who inside the Iranian government controlled Shelbit or whether the IRGC directly operated the exchange or the wider gambling network. Investigators were also unable to determine the final destination of much of the cryptocurrency that passed through the platform. That distinction matters because blockchain links can show transfers between addresses but do not always prove ownership, operational control or knowledge of the funds’ origin. The findings nevertheless raise questions about how an unlicensed exchange moved billions of dollars while operating from a major international financial center.

Why Did $676 Million Move To Binance?

At least $676 million moved from Shelbit-linked addresses to Binance after May 2024. About $540 million of that amount was transferred after Dubai’s Virtual Assets Regulatory Authority fined Shelbit in January 2025 for operating without a license. The continued movement of funds after the regulatory action suggests that the penalty did not immediately cut Shelbit off from the wider crypto market. It also shows how unlicensed platforms can use accounts belonging to customers or associated parties to reach larger exchanges without maintaining an account under the platform’s own name. Blockchain researcher Rich Sanders said he informed Binance about Shelbit’s alleged Iranian connections in October 2025. Binance said Shelbit itself did not hold an account on the exchange, while accounts connected to its users were investigated, frozen and reported to law enforcement. “When users associated with Shelbit interacted with our platform, our compliance program operated as it should have,” Binance said. The transfers place renewed attention on Binance’s sanctions controls. The exchange pleaded guilty in 2023 to anti-money-laundering and sanctions violations and agreed to pay $4.3 billion. U.S. officials said at the time that Binance had facilitated about $900 million in transactions between American and Iranian users.

Investor Takeaway

The case shows that enforcement against an unlicensed exchange may not stop funds from reaching larger platforms. For regulated exchanges, the greater risk lies in identifying networks of related users and intermediary wallets before sanctioned exposure enters their systems.

What Are Dubai And U.S. Regulators Investigating?

Dubai’s virtual asset regulator is investigating Shelbit’s alleged involvement in money laundering and Iranian sanctions evasion. VARA issued a notice on July 24 ordering the exchange to stop operating without authorization. The regulator said the identified exposure extended beyond consumer protection and involved cross-border transactions that could affect the integrity of the UAE financial system. The language indicates that the investigation is focused not only on licensing failures but also on the origin, destination and purpose of funds moving through the exchange. The U.S. Treasury Department’s Office of Foreign Assets Control is also aware of the allegations and is treating them seriously. Any finding that Shelbit knowingly facilitated transactions for sanctioned entities could expose the platform, its operators and counterparties to further restrictions or enforcement action. Kayvanpour and the Iranian government did not respond to requests for comment. Sobhani and Mokhtari denied knowing Kayvanpour or Shelbit and said they were unaware of Iranian state involvement in the gambling sites they promoted.

What Does The Case Mean For Crypto Compliance?

Shelbit’s reported activity shows the difficulty regulators face when a crypto network combines gambling operators, mining proceeds, state-linked entities and large centralized exchanges across several jurisdictions. Direct wallet screening may identify sanctioned addresses, but funds can pass through multiple intermediaries before reaching a regulated platform. Exchanges therefore need to assess transaction patterns, related accounts and clusters of addresses rather than relying only on whether a named company holds an account. The case may also increase pressure on Dubai to show that enforcement actions can quickly restrict unlicensed operators. A fine without effective disruption may allow a platform to continue routing funds through outside exchanges and customer-controlled wallets. For Binance and other global exchanges, the investigation could lead to closer review of transfers connected to Iranian users and Dubai-based intermediaries. Regulators will be watching whether compliance systems detected the activity independently, how quickly accounts were frozen and whether suspicious transactions were reported before investigators raised concerns. The central issue is no longer only whether Shelbit operated without a license. It is whether the exchange became a gateway through which state-linked and potentially sanctioned funds entered the global cryptocurrency market.