A cryptocurrency exchange based in Dubai has processed at least $4 billion in digital assets as part of what investigators describe as an Iranian sanctions evasion network, according to a Reuters investigation.
According to the report, the exchange, Shelbit, operates from an office in Dubai and is run by an expatriate Iranian without a license. The report cited data reviewed by Reuters that was provided by two cryptocurrency investigative firms and an independent blockchain analyst.
According to the investigation, one of Shelbit's principal customers is a Farsi-language online gambling network comprising more than 2,000 websites. The network is fronted by two Iranian influencers with government connections, and both men, together with the operator of Shelbit, were convicted in Iran in 2023 in connection with an illegal gambling case.
Although gambling is prohibited in Iran and carries criminal penalties, the report states that the gambling network has access to Iran's online payments infrastructure, which is overseen by the country's central bank.
The investigation found that blockchain records trace tens of millions of dollars in cryptocurrency from the gambling network to Shelbit. Reuters reported that investigators estimate the exchange has processed at least $4 billion since May 2024.
According to the report, Shelbit has transferred hundreds of millions of dollars in cryptocurrency to major industry participants, including Binance. The investigation also reported that the exchange has interacted with wallets linked by the Israeli government to the Islamic Revolutionary Guard Corps (IRGC), Iran's central bank, and Nobitex, an Iranian cryptocurrency exchange sanctioned by the US earlier this year.
Reuters further reported that some of the cryptocurrency reaching Shelbit originated from what the investigative firms identified as an Iranian bitcoin mining operation.
The investigation was based on interviews with more than 30 people, including former individuals affiliated with the IRGC, a former government official, senior Iranian insiders familiar with the alleged operation, and others with direct knowledge of the network.