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A cryptocurrency network allegedly helped Iran move billions of dollars through global financial markets despite years of international sanctions, according to an investigation.
The report said investigators traced at least $4 billion in cryptocurrency transactions through Dubai-based exchange Shelbit, which allegedly linked sanctioned Iranian entities, illegal gambling operations and international crypto markets.
The investigation findings were based on blockchain data, cryptocurrency transaction records, cybersecurity research and interviews with more than 30 people. It alleged that Shelbit processed transactions tied to Iran’s central bank, a large online gambling network and other sanctioned entities.
Dubai regulators took action against the exchange for operating without a license and are now investigating broader allegations of financial crime.
Investigators Trace Billions Through Blockchain
According to reports, two cryptocurrency investigative firms and blockchain researcher Rich Sanders analyzed transaction records linked to Shelbit. Their analysis found the Dubai-based exchange processed at least $4 billion in cryptocurrency transactions since May 2024. Investigators also traced tens of millions of dollars from an Iranian online gambling network directly to the exchange.
The investigation also linked Shelbit to Iran’s central bank, cryptocurrency wallets associated with the Islamic Revolutionary Guard Corps (IRGC) and Iranian exchange Nobitex, based on blockchain records. The United States sanctioned Nobitex earlier this year after a separate Reuters investigation reported alleged ties between the exchange and the Iranian government.
John Wojcik, a former Infoblox executive who now works at TRM Labs, said the scale of the operation stood out. “This is by far the biggest Iranian illegal gambling network ever discovered and one of the biggest in the world.”
Reuters also used cybersecurity analysis to map connections among more than 2,000 gambling websites. The analysis found many of the sites were linked despite operating under different names and registration records.
Gambling Platforms Became Financial Channels
The investigation alleged that the gambling websites grew beyond betting platforms and became channels for moving money. Although gambling is illegal in Iran, investigators said the network continued to access the country’s tightly controlled online payment system.
It identified Iranian influencers Sasha Sobhani and Pooyan Mokhtari as prominent promoters of the gambling websites. Both denied any involvement in money laundering, sanctions evasion or activities linked to the Iranian government.
Sobhani told Reuters: “I categorically deny any involvement in money laundering, sanctions evasion, terrorism financing or moving funds on behalf of the Iranian government, the Central Bank of Iran, the IRGC or any other Iranian state institution.”
Cryptocurrency helped move gambling proceeds beyond Iran’s financial system, allowing funds to be transferred across borders more easily.
Shelbit Allegedly Connected Iran to Global Markets
The investigation described Shelbit as the central intermediary within the alleged operation. The exchange reportedly lacked a public trading platform while processing hundreds of millions of dollars involving major crypto businesses.
Blockchain analysts claimed Shelbit handled at least $125 million linked directly to Iran’s central bank. Investigators also traced crypto from suspected Iranian bitcoin mining operations into the exchange through intermediary wallets.
Reuters said bitcoin mining has become increasingly important for Iran because newly created cryptocurrencies can enter global markets without relying on traditional banking channels. The report said that allows the country to generate digital assets that can be traded internationally despite financial sanctions.
It also reported that at least $676 million moved from Shelbit-linked wallets to Binance since May 2024. Binance stated that Shelbit never held a Binance account and disputed suggestions that those transactions represented unusually high risks.
The exchange said: “When users associated with Shelbit interacted with our platform, our compliance program operated as it should have: it investigated, froze the relevant accounts, and reported them to law enforcement.”
Regulators Increase Enforcement Efforts
Dubai’s Virtual Assets Regulatory Authority (VARA) took enforcement action against Shelbit in 2025 for operating without authorization, Reuters reported. After Reuters contacted the regulator about its findings, VARA issued another public notice ordering the exchange to immediately stop all unlicensed virtual asset activities.
The regulator said its concerns extended beyond consumer protection. “The exposure identified by VARA extends beyond consumer protection to more egregious cross-border transactions with the propensity to impact the integrity of the UAE financial system.”
Reuters also reported that VARA is investigating allegations involving sanctions evasion, money laundering and terrorism financing. The U.S. Treasury Department said it was aware of the allegations and was taking them seriously as it continued efforts to disrupt Iranian cryptocurrency networks.
The investigation highlighted how blockchain records can help investigators trace cryptocurrency transactions while examining allegations that digital assets and offshore exchanges were used to move funds across borders despite international sanctions.
Related: US Freezes $130M IRGC Crypto Wallet, Escalates Iran Crackdown