Iran-linked exchange sent $676 million to Binance in alleged sanctions-evasion operation: Reuters

An unlicensed Dubai-based crypto exchange processed at least $4 billion while serving as a hub connecting an Iranian gambling network, the country's central bank and entities linked to the Islamic Revolutionary Guard Corps (IRGC), Reuters reported Friday.

Shelbit, run by Iranian expatriate Siavash Kayvanpour, handled the funds after apparently beginning operations in May 2024, according to blockchain data analyzed by two unnamed investigative firms and researcher Rich Sanders and shared with Reuters.

Its customers included a network of more than 2,000 Farsi-language gambling websites promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari, Reuters reported. Tens of millions of dollars associated with the sites could be traced to Shelbit.

The exchange also directly interacted with Iran's central bank, wallets Israel has linked to the IRGC, and Nobitex, Iran's largest crypto exchange. Researchers said Shelbit processed at least $125 million from the central bank and another $20 million originating from a suspected Iranian bitcoin mining operation.

Reuters said it could not independently determine whether the IRGC directly controlled Shelbit or the gambling network. The report also did not identify who within Iran's government oversaw the operation or establish where much of the crypto ultimately ended up.

The Block previously reported that Nobitex processed hundreds of millions of dollars tied to Iran's central bank and the IRGC before the U.S. sanctioned the exchange in June. Other investigations have linked billions of dollars in crypto activity to sanctioned Iranian entities and exchanges operating outside the country.

$676 million flowed to Binance

Per the report, at least $676 million moved from Shelbit-linked addresses to Binance after May 2024. The sum includes about $540 million that was moved after Dubai's Virtual Assets Regulatory Authority (VARA) fined Shelbit in January 2025 for operating without a license.

Sanders said he notified Binance about Shelbit's Iran connections in October 2025. Binance said Shelbit itself never held an account on the platform, while accounts associated with its users were investigated, frozen and reported to law enforcement.

"When users associated with Shelbit interacted with our platform, our compliance program operated as it should have," Binance told Reuters.

Binance pleaded guilty in 2023 to anti-money-laundering and sanctions violations and agreed to pay a fine of $4.3 billion. U.S. officials said the exchange had facilitated about $900 million in transactions between American and Iranian users.

Regulators investigate

Dubai's VARA is investigating Shelbit's alleged involvement in money laundering and Iranian sanctions evasion, Reuters reported, citing a person familiar with the matter.

The regulator issued a notice on July 24 ordering Shelbit to halt its unlicensed activity. "The exposure identified by VARA extends beyond consumer protection to more egregious cross-border transactions with the propension to impact the integrity of the UAE financial system," the notice states. 

The U.S. Treasury Department's Office of Foreign Assets Control is also aware of the allegations and is taking them "very seriously," a spokesperson told Reuters.

Sobhani and Mokhtari denied knowing Kayvanpour or Shelbit and said they were unaware of Iranian state involvement in the gambling sites they promoted. Kayvanpour and the Iranian government did not respond to requests for comment from Reuters.