- Blockchain analysis alleges an unlicensed Dubai crypto exchange became a key channel linking Iranian gambling operations with state-connected financial flows.
- Investigators traced hundreds of millions of dollars in cryptocurrency transfers through major exchanges while regulators continue examining the platform’s activities.
- The findings add to concerns about how offshore crypto infrastructure can be used to move funds connected to sanctioned entities.
Blockchain investigators have alleged that Dubai-based cryptocurrency exchange Shelbit facilitated at least US$4 billion (AU$5.68 billion) in transactions tied to an Iranian sanctions evasion network involving gambling websites, state-linked entities and cryptocurrency transfers.
According to analysis shared with Reuters, the unlicensed exchange became a financial hub connecting more than 2,000 Farsi-language gambling sites with Iranian institutions and digital asset markets beyond the country’s borders. Gambling remains prohibited under Iranian law.
The investigation found that wallets linked to Shelbit processed at least US$125 million (AU$177.5 million) associated with Iran’s central bank, together with funds from state-approved cryptocurrency mining operations and wallets connected to the Islamic Revolutionary Guard Corps (IRGC). Reuters said it could not independently verify whether the IRGC directly controlled the exchange or the broader network.
Related: Crypto Trail Exposes Chinese Fentanyl Network Using Japan as a Smuggling Hub
Following the Money
Investigators also tracked at least US$676 million (AU$959.92 million) in cryptocurrency transfers from Shelbit-linked wallets to Binance. More than US$540 million (AU$766.8 million) of those transfers allegedly occurred after Dubai authorities fined Shelbit in 2025 for operating without the required licence.
Binance stated that Shelbit never maintained an account on its platform and said its compliance processes investigated relevant users, froze affected accounts and reported them to law enforcement agencies.
The reported transactions have intensified concerns over how digital assets can be used to move funds linked to sanctioned organisations, while regulators in Dubai continue investigating the exchange for suspected compliance failures.
Related: U.S. Freezes $131M in Crypto Linked to Iran Amid Escalating Conflict
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