Dubai’s Shelbit linked to $4 billion Iran sanctions evasion

An unlicensed cryptocurrency exchange based in Dubai has been identified as a central hub for a massive Iranian sanctions-evasion network, moving at least $4 billion since May 2024, according to a new investigation. The exchange, Shelbit, allegedly processed funds for a vast illegal online gambling operation and other sanctioned Iranian entities, raising significant concerns about the use of digital assets to bypass international financial restrictions.

The investigation, corroborated by blockchain data and interviews, found that Shelbit's largest customer was a Farsi-language online gambling network spanning more than 2,000 websites. Gambling is illegal in Iran, yet the network reportedly had access to the country's central-bank-supervised payment systems. Tens of millions of dollars from these gambling sites flowed into Shelbit's wallets. The operation was fronted by two Iranian social media influencers, Sasha Sobhani and Pooyan Mokhtari, who were convicted in Iran in 2023 alongside Shelbit's operator, Iranian expatriate Siavash Kayvanpour, in connection with illegal gambling.

From Shelbit, hundreds of millions of dollars moved onward to mainstream cryptocurrency platforms. At...