Since May 2024, an unlicensed Dubai-based crypto exchange named Shelbit has handled over $4 billion connected to a massive network of more than 2,000 illegal Iranian gambling websites. This isn’t just a case of underground betting; the operation also involved money tied to Iran’s central bank and entities linked to the Islamic Revolutionary Guard Corps, highlighting a major sanctions evasion effort.
The gambling network was heavily promoted by Iranian social media figures Sasha Sobhani and Pooyan Mokhtari. Despite their 2023 convictions for illegal gambling, the financial system they built kept running. Blockchain researchers traced $676 million of crypto moving from Shelbit to Binance, one of the world’s largest exchanges, showing how these illicit funds reached global markets despite sanctions.
Dubai’s Virtual Assets Regulatory Authority, set up to supervise digital currencies, investigated Shelbit for money laundering and sanctions breaches. Although the exchange had been active since mid-2024, the official shutdown only came in July 2026 after earlier enforcement attempts in 2025.
These developments expose how crypto can be exploited to bypass international restrictions, with state-linked Iranian groups reportedly controlling much of the country’s online gambling operations. The intertwining of illegal betting and geopolitical tensions adds complexity to efforts aimed at tightening crypto regulations worldwide.
This material is for informational purposes and is not financial advice.
