Shelbit Network Exposed: $4 Billion Crypto Sanctions Dodge

A Reuters probe reveals how the Shelbit network moved billions via crypto and illegal gambling to bypass Iranian sanctions, involving Binance and the IRGC.

At the center of a massive financial web sits Shelbit, a platform that investigators claim served as the primary conduit for moving funds between Iranian state entities, illegal gambling operators, and international crypto exchanges.

The investigation represents one of the most significant efforts to date to link cryptocurrency infrastructure with operations designed to bypass international sanctions.

Online Gambling Fueled the Operation

According to Reuters, a substantial portion of these funds flowed through a network of over 2,000 online betting platforms, described as one of the world’s largest illegal gambling ecosystems.

Investigators allege that the Islamic Revolutionary Guard Corps (IRGC) has seized control of much of this market in recent years, utilizing it for cross-border capital transfers.

Key figures linked to the network include influencers Sasha Sobhani, currently living in Madrid, and Hong Kong-based Pooyan Mokhtari. Alongside Shelbit founder Siavash Kaivanpour, they were convicted in absentia in Iran in 2023 on charges related to illegal gambling.

Links to Sanctioned Iranian Institutions

Blockchain analysis cited by Reuters shows that addresses associated with Shelbit interacted directly with the Central Bank of Iran, processing at least $125 million linked to the institution.

Furthermore, the platform exchanged funds with Nobitex, a sanctioned Iranian crypto exchange, and digital wallets that Israeli authorities have connected to the IRGC.

The data also suggests that some funds originated from state-sponsored Bitcoin mining operations in Iran, which were used to create and subsequently transfer newly minted digital assets.

Binance Processed Hundreds of Millions

Reuters reports that since May 2024, at least $676 million moved from Shelbit-linked addresses to Binance. Approximately $540 million of those funds were transferred after Dubai regulators had already sanctioned Shelbit for operating without a license.

Binance told Reuters that Shelbit never held an account on its platform and noted that, at the time of processing, the related transactions were not flagged as high-risk by independent blockchain analysis systems.

While the exchange did not dispute processing funds tied to the investigation, it stated that it eventually identified the associated users, froze their accounts, and notified law enforcement agencies.

Dubai Regulator Launches Investigation

Dubai’s Virtual Assets Regulatory Authority (VARA) has initiated a formal investigation into Shelbit. On July 24, the regulator issued an immediate cease-and-desist order, citing severe violations of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations.

According to Reuters, the company’s registered office is located in a Dubai hotel, where staff on-site claimed to have no information regarding the firm’s business activities.

This investigation brings the role of cryptocurrency infrastructure in enforcing international sanctions back into sharp focus. It highlights the mounting pressure on exchanges and regulators to tighten oversight of cross-border digital asset flows.