A Reuters investigation said Dubai-based crypto exchange Shelbit, which was operating without a license, moved at least $4 billion for an Iranian gambling network and also handled transfers involving sanctioned Iranian entities. The report said Shelbit processed funds for a Persian-language gambling network spanning more than 2,000 websites. It also identified links to the Central Bank of Iran, Nobitex — Iran’s largest exchange, which has been sanctioned by the United States — and wallet addresses that Israel has linked to Iran’s Islamic Revolutionary Guard Corps, or IRGC. Reuters said that, since May 2024, at least $676 million moved from addresses associated with Shelbit to Binance, the world’s largest crypto exchange. On the regulatory side, Dubai’s Virtual Assets Regulatory Authority, or VARA, issued a cease-and-desist order against Shelbit General Trading L.L.C. on July 24 and imposed a fine, citing unlicensed operations and failures to implement know-your-customer, or KYC, requirements. The U.S. Office of Foreign Assets Control said it is reviewing the case and has signaled possible action involving digital assets connected to the Iranian regime.
A Reuters investigation found that Shelbit, an unlicensed crypto exchange in Dubai, moved at least $4 billion for an Iranian gambling network and also handled money flows for sanctioned Iranian entities. The case points to continuing gaps in the use of cryptocurrency to evade sanctions.
Reuters links Shelbit to a large Iranian gambling network
According to Reuters, Shelbit processed funds for a Persian-language gambling network that spans more than 2,000 websites. The investigation also said the exchange had dealings involving the Central Bank of Iran, Nobitex — Iran’s largest crypto exchange, which is under U.S. sanctions — and wallet addresses that Israel has identified as linked to Iran’s Islamic Revolutionary Guard Corps, or IRGC.
In Reuters’ account, Shelbit was serving both underground gambling flows and financial transfers connected to sanctioned Iranian state and military-linked entities.
$676 million reportedly flowed to Binance
The investigation said that, since May 2024, at least $676 million moved from addresses tied to Shelbit to Binance, the world’s largest cryptocurrency exchange.
VARA ordered Shelbit to halt operations
Dubai’s Virtual Assets Regulatory Authority, or VARA, issued a cease-and-desist order and a fine against Shelbit General Trading L.L.C. on July 24. The regulator cited unlicensed business activity and failures to enforce know-your-customer, or KYC, rules.
The U.S. Office of Foreign Assets Control, or OFAC, said it is reviewing the matter and has signaled possible measures targeting digital assets connected to the Iranian regime.
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