Shelbit handled US$4 billion involving Iran and transferred US$676 million to…

How did Shelbit handle at least $4 billion?

According to blockchain analysis, Dubai-based cryptocurrency exchange Shelbit has processed at least US$4 billion since it began operations in May 2024. Analysis linked the platform to Iranian gambling websites, the Central Bank of Iran and wallets associated with sanctioned entities. The unlicensed exchange is operated by Iranian expatriate Siavash Kayvanpour and appears to serve as a clearing center between multiple parts of the network. Investigators tracked tens of millions of dollars from more than 2000 Farsian-language gambling sites promoted by Iranian Internet celebrities Sasha Sobhani and Pooyan Mokhtari. Wallets associated with Shelbit-also interact directly with the Central Bank of Iran, the Nobitex Exchange, and addresses Israel believes are related to the Islamic Revolutionary Guard Corps. Researchers found that at least $125 million came from the central bank and another $20 million came from a suspected Iranian bitcoin mining business. Existing blockchain evidence cannot determine who within the Iranian government controls Shelbit, or whether the Islamic Revolutionary Guards Corps directly operates the exchange or the broader gambling network. Investigators were also unable to determine the final destination of the large amount of cryptocurrency passed through the platform. This distinction is important because blockchain links can show transfers between addresses, but do not always prove ownership, operational control or knowledge of the source of the funds. However, the findings raise the question: How can an unlicensed exchange shift billions of dollars while operating in a major international financial center?

Why was $676 million transferred to Binance?

After May 2024, at least $676 million was transferred from Shelbit-related addresses to Binance. About US$540 million of this was transferred after the Dubai Virtual Assets Authority imposed a fine on Shelbit in January 2025 for operating unlicensed operations. The continued flow of funds after the regulatory action suggests that the fine did not immediately cut Shelbit off from the broader cryptocurrency market. This also shows how unlicensed platforms can use the accounts of customers or related parties to access large exchanges without having to open accounts in the platform's own name. Blockchain researcher Rich Sanders said he told Binance in October 2025 about Shelbit's alleged links to Iran. Binance said Shelbit itself does not hold accounts on the exchange, and accounts associated with Shelbit users have been investigated, frozen and reported to law enforcement. "When users associated with Shelbit interact with our platform, our compliance program works as expected," Binance said. These transfers have brought renewed attention to Binance sanctions controls. The exchange pleaded guilty in 2023 to violating anti-money laundering and sanctions regulations and agreed to pay $4.3 billion. U.S. officials said at the time that Binance facilitated approximately $900 million in transactions between U.S. and Iranian users.

Investor Enlightenment

The case shows that enforcement actions against unlicensed exchanges may not be able to stop funds flowing into large platforms. For regulated exchanges, the greater risk lies in identifying relevant users and networks of intermediate wallets before sanctioned objects enter their systems.

What are Dubai and U.S. regulators investigating?

Dubai's virtual asset regulator is investigating Shelbit's alleged involvement in money laundering and circumvention of Iranian sanctions. VARA issued a notice on July 24 requiring the exchange to stop unauthorized operations. Regulators said the identified risks related not only to consumer protection, but also to cross-border transactions that could affect the integrity of the United Arab Emirates financial system. The wording suggests that the investigation was not just concerned about license violations, but also the source, destination and purpose of funds flowing through the exchange. The U.S. Treasury Department's Office of Foreign Assets Control has also been aware of the allegations and takes them seriously. Any finding that Shelbit has deliberately facilitated transactions for sanctioned entities could expose the platform, its operators and counterparties to further restrictions or enforcement action. Kayvanpour and the Iranian government did not respond to requests for comment. Sobhani and Mokhtari denied knowing Kayvanpour or Shelbit and said they were unaware of the Iranian state's involvement in the gambling sites they promoted.

What does this case mean for cryptocurrency compliance?

Shelbit's reported activities illustrate the difficulties regulators face when cryptocurrency networks simultaneously involve gambling operators, mining revenue, state-affiliated entities, and large centralized exchanges, and span multiple jurisdictions. Direct wallet screening may identify sanctioned addresses, but funds may go through multiple intermediate links before reaching regulated platforms. Therefore, exchanges need to evaluate trading patterns, associated accounts and address clusters, rather than relying solely on whether a well-known company holds an account. The case could also increase pressure on Dubai to show that enforcement actions can quickly restrict unlicensed operators. If fines are not effectively blocked, the platform may continue to transfer funds through external exchanges and client-controlled wallets. For Binance and other global exchanges, the investigation could lead to greater scrutiny of transfers related to Iranian users and Dubai intermediaries. Regulators will look at whether compliance systems independently detect these activities, how quickly accounts are frozen, and whether suspicious transactions have been reported before investigators raise concerns. The core issue is no longer whether Shelbit is operating without a license, but whether the exchange has become a channel for state-linked and potentially sanctioned funds to enter the global cryptocurrency market.