A cryptocurrency exchange operating out of Dubai is accused of facilitating the movement of billions in funds for one of the largest illicit online gambling networks globally while also acting as a center for evading Iranian sanctions, as outlined in a Reuters investigation.
Shelbit, an unauthorized cryptocurrency exchange based in Dubai, is reported to have handled over $4 billion in crypto transactions since May 2024, according to Reuters. Blockchain analysis accessed by the news outlet claims to link Shelbit with an extensive Farsi-language gambling network consisting of more than 2,000 websites, the Iranian central bank, and other sanctioned entities in Iran.
John Wojcik, a former senior threat researcher at Infoblox, informed Reuters that this gambling operation is the largest ever uncovered in Iran and ranks among the most substantial globally.
Influencers Behind the Gambling Network
The gambling sites are endorsed by Iranian musicians and social media figures Sasha Sobhani and Pooyan Mokhtari, who have gained millions of followers by showcasing their extravagant lifestyles that include sports cars, yachts, and private jets.
The Reuters report indicates that Sobhani, Mokhtari, and Shelbit founder Siavash Kayvanpour were convicted in absentia in Iran for their involvement in illegal gambling activities in 2023.
Although gambling is outlawed in Iran, Reuters discovered that these websites seemingly accessed the nation’s tightly regulated electronic payment system, which is managed by the Iranian central bank.
Former Iranian officials consulted by Reuters alleged that the Islamic Revolutionary Guard Corps (IRGC) steadily seized control of Iran’s lucrative online gambling sector, using it to transfer funds outside the country. However, the news organization could not independently verify if the IRGC had direct control over Shelbit or the gambling network.
Dubai’s Regulatory Actions and Binance’s Statements
According to Reuters, Dubai’s Virtual Assets Regulatory Authority (VARA) took enforcement measures against Shelbit this year for functioning without a proper license, subsequently ordering the exchange to halt its operations due to claimed violations related to anti-money laundering and terrorism financing.
Blockchain analysis indicates that at least $676 million in cryptocurrency was moved from wallets linked to Shelbit to Binance, as reported by Reuters.
In response, Binance asserted to Reuters that Shelbit had never maintained a Binance account and clarified that accounts tied to the exchange had been scrutinized, frozen, and reported to law enforcement as necessary.
While Binance contested certain elements of Reuters’ findings, it did not refute the processing of transactions associated with Shelbit.
Sobhani has denied any participation in money laundering, sanctions evasion, or financing terrorism, while Mokhtari refuted any association with the IRGC and claimed ignorance regarding Shelbit.
No comments were made by Iranian officials or Kayvanpour in response to the inquiries made by Reuters.
The U.S. Treasury Department has acknowledged awareness of the allegations, stating that they are being taken with utmost seriousness.