CoinDesk
A Dubai-based illegal gambling network is routing hundreds of millions of dollars through Shelbit, an unlicensed crypto exchange that investigators say sits at the center of a $4 billion Iranian sanctions-evasion scheme, Reuters reported on Friday.
Shelbit, run by Iranian expatriate Siavash Kayvanpour, allegedly links the gambling network, Iran's central bank and other sanctioned Iranian entities to global crypto markets. The Central Bank of Iran has been sanctioned under U.S. counterterrorism authorities since 2019 over its support for the Islamic Revolutionary Guard Corps, its Quds Force, and Hezbollah. The network itself counts more than 2,000 platforms and is described as one of the world's largest illegal gambling operations.
Why it matters
U.S. and independent investigators say the operation appears closely tied to the IRGC, though Reuters said it could not confirm direct IRGC control over Shelbit or the gambling network. The exchange has moved hundreds of millions of dollars through major crypto platforms, including Binance, the world's largest exchange. TRM Labs senior analyst John Wojcik, a former UNODC researcher, called the network the biggest Iranian illegal gambling operation ever discovered and one of the largest in the world. Independent investigator Rich Sanders was blunt: "It's an IRGC operation, and that's plain as day."
Market impact
The story lands on every compliance desk running a sanctions program against Iran-linked flows, and the IRGC mention is the part that will draw the regulator's attention. Binance told Reuters that Shelbit never held an account on its platform, that transactions linked to Shelbit were not considered high risk, and that it had investigated associated users, frozen relevant accounts and reported them to law enforcement. The case joins a string of recent Iran-linked crypto seizures: the U.S. seized $1 billion in crypto from Iran in May, and earlier this year sanctioned Nobitex, an Iranian exchange that Reuters previously linked to the government.
Frequently asked questions
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What is Shelbit and what is it accused of?
Shelbit is an unlicensed Dubai-based crypto exchange run by Iranian expatriate Siavash Kayvanpour. Reuters reported that it sits at the center of a $4 billion Iranian sanctions-evasion scheme, acting as the hub connecting an illegal gambling network, Iran's central bank, and other sanctioned Iranian entities to global…
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How does the scheme connect to the IRGC?
U.S. and independent investigators say the operation appears closely tied to Iran's Islamic Revolutionary Guard Corps. Reuters said it could not confirm direct IRGC control over Shelbit or the gambling network, but the exchange is alleged to interact with wallets linked to the IRGC by the Israeli government and to…
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What was Binance's role in the alleged scheme?
Reuters reported that Shelbit moved hundreds of millions of dollars through major crypto platforms including Binance. Binance told Reuters that Shelbit never held an account on its platform, that transactions linked to Shelbit were not considered high risk, and that it had investigated associated users, frozen…
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How large is the illegal gambling network?
The Dubai-based gambling network counts more than 2,000 platforms and is described by TRM Labs senior analyst John Wojcik, a former UNODC researcher, as the biggest Iranian illegal gambling network ever discovered and one of the largest in the world.
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How does this compare to previous Iran-linked crypto enforcement actions?
Investigators described the scheme as one of the largest Iranian sanctions-evasion networks discovered since 2016, when the U.S. broke up a roughly $20 billion IRGC gold-for-oil operation based in Turkey. The U.S. also seized $1 billion in crypto from Iran in May and earlier this year sanctioned Iranian exchange…
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