Dubai-based exchange Shelbit transferred at least $4 billion via Iran network

The unlicensed Dubai crypto exchange Shelbit is at the centre of a major Reuters investigation. Since May 2024, the platform has processed at least $4 billion through a network linked to Iranian online gambling activities, the Iranian central bank and sanctioned organisations, including wallets that Israel links to the Islamic Revolutionary Guard Corps (IRGC).

In brief:

• Shelbit processed at least $4 billion through an Iran-linked network, including connections to sanctioned entities and the IRGC.
• Dubai regulator VARA imposed a fine on Shelbit on 24 July for continuing operations without a licence.
• Blockchain researcher Rich Sanders claims Shelbit is an IRGC operation.

Network with tentacles reaching Binance and the Iranian state

Analysis by two anonymous crypto research firms and independent blockchain researcher Rich Sanders shows that tens of millions of dollars from an Iranian gambling network can be traced through the blockchain to Shelbit. Sanders, who specialises in Iran-related financial flows, is clear in his assessment: “It is an IRGC operation, that is crystal clear.”

Shelbit moved hundreds of millions to major names in the crypto sector, including Binance, the world’s largest crypto exchange. In addition, Shelbit maintained direct connections with the Iranian central bank, wallets that the Israeli government links to the IRGC, and Nobitex, an Iranian exchange that the US government sanctioned earlier this year following an earlier Reuters investigation that exposed its ties to the Iranian government.

Money flows continued despite war and bombardments

Part of the money that flowed to Shelbit comes from what the two research firms describe as an Iranian Bitcoin mining operation. The money flows continued in the run-up to Iran’s conflict with the US and Israel in February, and even persisted after the Islamic Republic bombed the United Arab Emirates on several occasions, including a drone attack less than a kilometre from Shelbit’s offices, Reuters reports.

The whole picture shows how Iran manages to circumvent years of trade and banking sanctions. The IRGC plays a central role in this by keeping the economy running, even during the conflict with the US and Israel.

Fine from Dubai regulator VARA

Dubai’s financial regulator VARA imposed a fine on Shelbit on 24 July. The platform continued its operations despite a cease-and-desist order issued as early as January 2025. According to VARA, possible violations have been committed in the areas of money laundering and terrorist financing. The case raises new questions about regulatory oversight of crypto exchanges in the region and the risks that arise when platforms operate without a licence.