WASHINGTON – The United States (US) on Friday imposed sanctions on Shelbit, an unlicensed cryptocurrency exchange based in Dubai, accusing it of processing millions of dollars in crypto transactions for Iran’s Islamic Revolutionary Guard Corps (IRGC) and several groups linked to the Iranian government.
As reported by Reuters, the sanctions were imposed after a Reuters investigation on 31 July identified Shelbit as a hub for a US$4 billion Iranian sanctions evasion scheme.
The investigation found that Shelbit moved crypto assets for the Central Bank of Iran, the world’s largest illegal online gambling network, and several addresses that the Israeli government says are linked to the IRGC.
The US Treasury Department also sanctioned Shelbit founder Siavash Kayvanpour, an Iranian national living abroad, along with several companies linked to him.
Kayvanpour was accused of providing material support to the IRGC and Nobitex, Iran’s largest cryptocurrency exchange.
The US had previously sanctioned Nobitex on 2 June for helping the Iranian government evade Western sanctions, also following a Reuters investigation.
“The Treasury Department will pursue and dismantle the illicit financial networks that sustain the regime,” US Treasury Secretary Scott Bessent said in a statement.
On the same day, the US Treasury Department also sanctioned Aban Tether, an Iranian-based cryptocurrency exchange, for processing millions of dollars in transactions for sanctioned Iranian entities, including Nobitex.
Shelbit’s website had been inactive for months, preventing customers from carrying out transactions. However, the exchange continued to process funds, including during the US and Israeli war with Iran.
Shelbit’s website became active again one day after the Reuters investigation was published.
Shelbit LLC denied allegations that the company had knowingly engaged in money laundering, terrorist financing, illegal gambling, sanctions evasion, or activities for military organisations, governments or sanctioned parties.
In a statement on its website, which became active again on 1 August, Shelbit also said it had ceased operations in January 2026.
Shelbit and Kayvanpour did not immediately respond to requests for comment.
Tens of millions of dollars worth of crypto assets that flowed through Shelbit originated from suspected bitcoin mining operations in Iran that generated new crypto assets.
Millions of dollars more were linked to an illegal gambling network operated by two prominent Iranian social media influencers, according to the Reuters investigation.
“The willingness of the Iranian regime to allow this gambling network to operate demonstrates its hypocrisy and corruption,” the US Treasury Department said.
Dubai Regulator Flags Shelbit
The US sanctions came shortly after Dubai’s Virtual Assets Regulatory Authority (VARA) issued a notice stating that Shelbit had violated rules related to money laundering and terrorist financing.
VARA said on 24 July that Shelbit’s violations were not limited to consumer protection, but also involved cross-border transactions that could be more serious and potentially affect the integrity of the United Arab Emirates’ financial system.
The notice was issued shortly after Reuters asked VARA for comment on Shelbit’s activities.
VARA did not immediately respond to a request for comment. (DK/LM)
