“It raises serious questions about Binance’s compliance controls,” said a crypto compliance expert following new revelations about massive fund transfers connected to Iran. According to a Reuters investigation, Shelbit, a Dubai-based unregulated platform suspected of laundering Iranian money, moved at least $676 million to Binance. What makes this case particularly alarming is that $540 million of these transfers occurred after Shelbit was sanctioned by Dubai’s VARA regulator in January 2025.

The investigation reveals Shelbit’s role as a covert hub linking more than 2,000 Persian-language online betting sites, Tehran’s central bank, and wallets allegedly tied to Iran’s Islamic Revolutionary Guard Corps. Since May 2024, Shelbit reportedly processed over $4 billion, funneling a significant chunk directly into Binance’s ecosystem despite regulatory actions against it. While it remains unclear whether the IRGC managed these flows directly, the fact that so much money landed on Binance reignites long-standing concerns about the exchange’s ability to proactively prevent illicit transactions rather than simply reacting after the fact.

Stablecoins like USDT appear to be the preferred tool for these sanctioned networks due to their liquidity and ease of movement across platforms. This case highlights a persistent vulnerability in crypto compliance frameworks, with Binance’s USDT transactions under particular scrutiny. The U.S. Treasury’s Office of Foreign Assets Control (OFAC), already monitoring Binance closely after prior convictions in 2023, is expected to intensify its oversight amid these developments. The entire episode casts a shadow over Binance’s claims of solid compliance, suggesting gaps that could be exploited by sophisticated actors.

The Shelbit saga adds to a pattern of regulatory headaches for Binance, which has faced multiple investigations related to sanctions evasion and money laundering. It shows the ongoing challenge regulators face in policing crypto flows tied to geopolitical conflicts and shows how exchanges remain battlegrounds in global financial enforcement. Meanwhile, Binance’s response and any further regulatory actions will be closely watched by industry watchers and policymakers alike.

This material is for informational purposes only and does not constitute financial advice.