Dubai Exchange continues to transfer millions of Iranian-related funds to Binance after being fined

In January 2025, Dubai's cryptocurrency regulator fined unlicensed exchange Shelbit for operating without a license. The enforcement action did not stop investigators from tracing activities later through Shelbit linked wallets. Available reports suggest that large transfers of funds continue to occur after the regulators first intervened. The relevant blockchain analysis data has not been independently verified.

Public investigative reports point out that Shelbit is the core hub of a $4 billion Iranian sanctions-circumvention network-a description that has not been independently verified by this article, and external comments (unrelated to the original investigation) compare it to the approximately $20 billion Iranian Islamic Revolutionary Guard Corps (IRGC) gold-for-oil program that was dismantled in Turkey in 2016. According to public records, the exchange, run by Iranian expatriate Siavash Kayvanpour and without a public website, has processed funds related to more than 2000 gambling websites, Iran's Central Bank and other sanctioned entities since May 2024.

Timeline: Shelbit's rise and VARA's law enforcement actions

Date/incident
2023: An Iranian court found Kayvanpour guilty in absentia; Interpol subsequently issued a red warrant against two linked gambling network figures, which was later revoked.
May 2024: According to the report cited in this article, Shelbit associated network activities began.
January 2, 2025: The Dubai Virtual Assets Authority (VARA) issued its first stop order against Shelbit on the grounds that it was operating without a license.
July 24, 2026: VARA issued a formal penalty notice stating that it operated without a license, lacked KYC inspections, and conducted unauthorized marketing.

2023: Kayvanpour's name surfaced for the first time

Kayvanpour's association with Iran's illegal gambling world predates Shelbit. According to reports, in 2023, an Iranian court found him and two other gambling network leaders, Sasha Sobhani and Pooyan Mokhtari, guilty in absentia and sentenced them to three months in prison for aiding them-a court record included in the original material on which this article is based, but not independently verified. Reports reviewed for this article stated that Iran also applied for Interpol red warrants for Sobhani and Mokhtari; the two men were briefly detained in Spain before the warrants were subsequently revoked.

Infoblox's domain fingerprint identifies more than 2000 Shelbit-related websites

The gambling websites Shelbit serves are not clearly related on paper. Domain name records show different registration dates, names and brands. Cybersecurity company Infoblox has discovered its technical fingerprint: Shared software and infrastructure features connect more than 2000 websites into a Farsi-language network. According to reports reviewed for this article, the network, and on-line data that tracks the flow of its funds through Shelbit, formed the basis of the $4 billion figure at the core of the investigation.

January 2025: VARA first order, funds are still flowing

On January 2, 2025, the Dubai Virtual Assets Authority (VARA) issued its first stop order against Shelbit General Trading L.L.C. on the grounds that it was operating without a license. The order had no obvious operational consequences: the transfer of funds to Binance continued for another year and a half before VARA took a second, more stringent action in July 2026, after most of the total of US$676 million flowed out.

Period/Amount flowing to Binance
January 2, 2025 (VARA first order) Before: approximately US$136 million
After January 2, 2025: approximately US$540 million
Total since May 2024: The US$676 million

Binance response and the non-responding party

Binance stated that Shelbit had never held an account on its platform and that independent analysts did not classify the transaction as high risk at the time. Binance said that it has since launched an investigation into associated users, frozen relevant accounts, and reported them to law enforcement agencies. According to the original investigation, Kayvanpour did not respond to requests for comment, nor did the Iranian government, Dubai police and the Dubai Prosecutor's Office. Sobhani, one of the gambling network's leaders, denied involvement in money laundering or sanctions evasion in an emailed statement.

July 24: Second, more stringent order

Eighteen months after the first action, VARA issued a formal fine notice on July 24, 2026. According to existing reports, the timing came shortly after regulators were asked to comment. The notice pointed out three specific violations: providing virtual asset services without a license, skipping mandatory KYC inspections, and unauthorized service marketing in Dubai. These actions were found to be violations of the United Arab Emirates Anti-Money Laundering Law of 2025 and its 2022 Virtual Asset Regulations.

"Immediately stop all unlicensed virtual asset activity." (VARA's fine notice on Shelbit General Trading L.L.C.)

Shelbit Status: Two VARA fines, no U.S. action

Shelbit has been fined twice by regulators in its country and ordered to stop operating. As of this writing, there have been no reports that the United States has imposed sanctions, designated or filed charges against Shelbit. This is the consequence of two different stages, and the gap between the two is an unresolved story.

VARA's law enforcement history is not limited to Shelbit. The agency issued a similar unlicensed operating warning against KuCoin March 2026, ordering multiple of its affiliated entities to stop marketing to Dubai residents before obtaining permits.

Outstanding IRGC issues and the U.S. Treasury's "know-only" stance

The U.S. Treasury Department took no further action in this regard. There were no designations, SDN (Specially Designated Nationals) list listings, or enforcement actions against Shelbit. This is in contrast to the more explicit statement put forward in his personal capacity by independent blockchain investigator Rich Sanders: "This was the IRGC's action, and it's obvious." (Rich Sanders, independent blockchain investigator) The original investigation failed to independently confirm this claim.

The Shelbit case is not an isolated incident: According to a June 2 announcement by the U.S. Treasury Department, in June the Treasury Department included Iran's Nobitex and three other exchanges on a designated list in its "Economic Rage" operation. Whether Shelbit itself will change from "known to the Ministry of Finance" to "designated by the Ministry of Finance" is a procedural question that has not yet been answered by Dubai's fines alone.

The broader industry trend is the opposite.

BTSE launched a fully licensed exchange in Indonesia in July through a local joint venture, part of a larger trend of exchanges seeking local authorization rather than being fined twice for unlicensed structures like Shelbit did.

FAQs

What is a Shelbit?
An unlicensed cryptocurrency exchange in Dubai operated by Iranian expatriate Siavash Kayvanpour. Public reports call it a capital flow hub connecting Iran's gambling network, Iran's central bank and the international cryptocurrency market.

Has the United States sanctioned Shelbit?
As of the time of writing, there have been no reports that it has been designated. The Treasury Department's public position is that it is aware of the allegations and takes them "very seriously." This is just an institution admitting that there is a problem, not a designation.

Did Binance do something wrong?
Binance said no, insisting that Shelbit never held an account on its platform and took immediate action after identifying associated users.