A Dubai-based cryptocurrency exchange, Shelbit, has been linked to a sprawling $4 billion network that allegedly evaded U.S. sanctions on Iran, according to information obtained by investigators. The network is said to have moved hundreds of millions of dollars through major crypto exchanges, including Binance, by connecting gambling sites and sanctioned Iranian entities to global crypto markets.
How the network operated
The scheme reportedly used a web of front companies and digital asset platforms to obscure the origin of funds. Shelbit acted as a key conduit, processing transactions that ultimately benefited Iranian firms and individuals blacklisted by the U.S. Treasury. Gambling websites were used as a layer to mix illicit funds with legitimate betting revenue, making the trail harder to trace.
Binance and other exchanges drawn in
Binance, the world's largest crypto exchange by volume, was among the platforms that received funds from the network. The extent of Binance's awareness or involvement remains unclear. Other unnamed exchanges also appear in the transaction records. The case highlights ongoing challenges in policing cross-border crypto flows, especially when intermediaries are based in jurisdictions with lighter oversight.
What happens next
U.S. and international regulators are expected to scrutinize the findings. The Treasury Department's Office of Foreign Assets Control (OFAC) could impose sanctions on Shelbit and related entities. Binance may face renewed questions about its compliance controls. The exchange has previously settled with U.S. authorities over sanctions lapses. For now, the full list of sanctioned parties and the exact volume routed through each platform remain under seal.
