Dubai Crypto Exchange Allegedly Involved in $4 Billion Iran Sanctions Evasion

A Dubai-based cryptocurrency exchange, Shelbit, is reportedly at the center of a massive $4 billion scheme designed to evade sanctions imposed on Iran. This operation allegedly involves substantial funds being funneled through Shelbit, which is run by Iranian expatriate Siavash Kayvanpour, and is linked to a significant illegal gambling network.

The gambling network, claimed to be one of the largest globally with over 2,000 platforms, has reportedly channeled hundreds of millions of dollars through Shelbit, granting Iran’s central bank and other sanctioned entities access to international markets. The Central Bank of Iran has faced U.S. sanctions since 2019 due to its support for the Islamic Revolutionary Guard Corps (IRGC), which is tied to various terrorist organizations.

In the latest findings, Shelbit has been implicated in transferring large sums to major cryptocurrency exchanges, including Binance. However, Binance has denied that Shelbit has maintained an account on its platform, asserting that it has conducted investigations and frozen accounts linked to Shelbit.

Experts believe this network represents one of the most significant Iranian sanctions-evasion operations identified in recent years, with connections to the IRGC being suggested, though direct control by the IRGC over Shelbit has not been confirmed. The IRGC is Iran's most powerful military and political organization, operating under the authority of the supreme leader.

Rich Sanders, an independent blockchain investigator, emphasized the operation's ties to the IRGC, while former researcher John Wojcik highlighted the scale of the gambling network as unprecedented. This operation is reminiscent of a past $20 billion gold-for-oil scheme dismantled by U.S. authorities in 2016 and follows the recent seizure of $1 billion in cryptocurrency from Iran by U.S. officials. Furthermore, some of the cryptocurrency flowing to Shelbit is believed to originate from Iranian bitcoin mining operations.