Key facts
- A Dubai-based illegal gambling network is allegedly using the unlicensed crypto exchange Shelbit.
- Shelbit is reportedly at the center of a $4 billion Iranian sanctions-evasion scheme.
- The exchange has moved hundreds of millions of dollars to major crypto platforms, including Binance.
- Investigators suggest a close tie between the operation and Iran's Islamic Revolutionary Guard Corps (IRGC).
- Shelbit also interacts with Iran's central bank and the sanctioned exchange Nobitex.
A significant illegal gambling network based in Dubai is allegedly channeling millions of dollars in cryptocurrency through Shelbit, an unlicensed exchange, as part of a $4 billion Iranian sanctions-evasion scheme, according to Reuters.
Shelbit, operated by Iranian expatriate Siavash Kayvanpour, is described as the hub of the money-moving operation. It reportedly provides access to global crypto markets for Iran's central bank and other sanctioned entities. Investigators suggest the operation is closely tied to Iran's Islamic Revolutionary Guard Corps (IRGC), though Reuters could not confirm direct IRGC control.
Shelbit has allegedly moved hundreds of millions of dollars to major crypto companies, including Binance. Binance stated that Shelbit never held an account on its platform and that transactions linked to it were not considered high risk. The exchange added that it investigated users associated with Shelbit, froze relevant accounts, and reported them to law enforcement.
John Wojcik, a senior analyst at TRM Labs, called the gambling network one of the largest ever discovered globally and one of the biggest Iranian sanctions-evasion networks since 2016. Separately, the U.S. seized $1 billion in crypto from Iran in May.
Independent blockchain researcher Rich Sanders stated, "It's an IRGC operation, and that's plain as day." Shelbit also reportedly interacts directly with Iran's central bank, wallets linked to the IRGC by the Israeli government, and Nobitex, an Iranian exchange sanctioned by the U.S. earlier this year.