Reuters Says Dubai Exchange Shelbit Served as Hub for Evading Iran Sanctions

Dubai-based digital-asset exchange Shelbit allegedly served as a key financial conduit in a large Iranian sanctions-evasion network.

Reuters reported on July 31 that Shelbit has processed at least $4 billion in digital assets since May 2024, linking more than 2,000 illegal gambling sites, the Central Bank of Iran and other U.S.-sanctioned entities to the global digital-asset market.

A blockchain analytics firm found that Shelbit transferred funds directly with wallets tied to the Central Bank of Iran, the Islamic Revolutionary Guard Corps, or IRGC, and Nobitex, an Iranian exchange under U.S. sanctions. Some of the money was traced to Iran's Bitcoin mining operations.

Reuters also reported that Dubai's Virtual Assets Regulatory Authority, or VARA, is investigating allegations that Shelbit was involved in money laundering and sanctions evasion tied to Iran. After determining last year that the exchange had been operating without a license, VARA on July 24 ordered it to immediately halt all operations for violating anti-money laundering and counter-terrorism financing rules.

John Wojcik, a senior analyst at TRM Labs, described Shelbit as the largest Iranian illicit gambling network identified so far and one of the biggest Iranian sanctions-evasion cases uncovered since 2016.