Illicit Iranian gambling network helped pull off a $4 billion sanctions dodge

Reuters reports that an unlicensed Dubai crypto exchange, Shelbit, run by an expatriate Iranian, processed at least $4 billion since May 2024, serving as a hub for an Iranian sanctions evasion operation. The network includes a Farsi-language gambling ring of over 2,000 websites, fronted by two influencers with government ties, and interacts with Iran's central bank and the IRGC. Dubai's VARA ordered Shelbit to cease operations.

A Reuters investigation has uncovered one of the world's largest illegal gambling networks, which also serves as a major Iranian sanctions evasion operation. The network is centered on Shelbit, an unlicensed crypto exchange operating from an office above a budget hotel in Dubai, run by an expatriate Iranian. Data from two crypto investigative firms and an independent analyst, reviewed by Reuters, shows Shelbit has processed at least $4 billion since May 2024. Among its main customers is a Farsi-language gambling network of more than 2,000 websites, fronted by two Iranian influencers with high-level government connections. The exchange has moved hundreds of millions in currency to major crypto players, including Binance, and interacts directly with Iran's central bank and wallets linked to the Islamic Revolutionary Guard Corps (IRGC). The IRGC is reported to have taken control of the largest gambling websites years ago to move money abroad. Dubai's Virtual Assets Regulatory Authority (VARA) has taken enforcement action against Shelbit for operating without a license and issued a notice on July 24 ordering it to cease all unlicensed activities. The investigation involved interviews with over 30 people, including former IRGC affiliates and government officials.