Catenaa, Wednesday, August 05, 2026- A Reuters investigation has alleged that an unlicensed cryptocurrency exchange operating from Dubai processed at least $4 billion in digital assets connected to Iranian entities, gambling networks and sanctioned organizations, raising fresh questions about sanctions enforcement and compliance within the global crypto ecosystem.
The investigation identified the exchange as Shelbit, reportedly established in May 2024 by Iranian expatriate Siavash Kayvanpour. Blockchain researchers cited by Reuters allege the platform acted as a financial bridge linking Iranian users, online gambling operations and institutions associated with the Iranian state.
The findings are now under review by regulators in both the United Arab Emirates and the United States.
According to blockchain analysis cited by Reuters, Shelbit allegedly processed transactions involving Iran’s central bank, Iran’s largest cryptocurrency exchange Nobitex and wallets that Israeli authorities have previously associated with the Islamic Revolutionary Guard Corps (IRGC).
Researchers estimated that approximately $125 million originated from Iran’s central bank, while another $20 million reportedly came from a suspected Iranian Bitcoin mining operation.
The investigation also linked the exchange to more than 2,000 Persian-language gambling websites promoted through social media personalities.
Reuters noted it could not independently verify whether the IRGC controlled either Shelbit or the gambling network, nor determine where much of the cryptocurrency ultimately moved.
Blockchain investigators further alleged that at least $676 million was transferred from wallets associated with Shelbit to Binance addresses after May 2024.
More than $540 million of those transfers allegedly occurred after Dubai’s Virtual Assets Regulatory Authority (VARA) fined Shelbit in January 2025 for operating without a license.
Binance disputed aspects of the findings.
The exchange said it found no evidence supporting some of the reported transaction figures and stated that Shelbit itself never maintained an account on its platform.
According to Binance, accounts linked to suspected users were investigated, frozen where appropriate and reported to law enforcement authorities under its compliance procedures.
Dubai’s VARA has reportedly opened an investigation into Shelbit over allegations involving money laundering and sanctions evasion.
The regulator issued a notice ordering the platform to cease unlicensed operations, citing concerns that the reported activities could affect the integrity of the UAE’s financial system.
Separately, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) confirmed it is aware of the allegations and is reviewing the matter.
The case underscores the growing challenges regulators face in policing cross-border cryptocurrency transactions involving jurisdictions subject to international sanctions.
Unlike conventional banking systems, digital asset transfers can move rapidly across multiple exchanges, wallets and decentralized services, increasing the complexity of tracing illicit financial flows.
Major exchanges have invested heavily in blockchain analytics, transaction monitoring and sanctions screening since regulators began imposing stricter compliance requirements.
The Reuters investigation adds to increasing scrutiny of cryptocurrency infrastructure operating across high-risk jurisdictions.
While many of the allegations remain under regulatory investigation, the case illustrates how geopolitical tensions, sanctions enforcement and digital asset compliance are becoming increasingly intertwined as cryptocurrencies continue expanding within global financial markets.
International regulators have intensified oversight of cryptocurrency platforms since several major exchanges faced enforcement actions related to anti-money laundering and sanctions compliance. Iran has increasingly relied on cryptocurrency mining and digital assets to access international markets amid longstanding financial sanctions. The UAE has simultaneously sought to become a global digital asset hub while strengthening regulatory oversight through the Virtual Assets Regulatory Authority to improve compliance with international financial standards.
