A Dubai-based cryptocurrency exchange has been linked to an alleged large-scale illegal online gambling network that investigators say moved billions of dollars through digital assets while potentially providing access to international financial channels for sanctioned Iranian entities.

An investigation based on blockchain analysis has identified Shelbit, an unlicensed cryptocurrency exchange, as a central point in a network involving more than 2,000 Farsi-language gambling websites. The exchange allegedly processed at least $4 billion in transactions from May 2024 onward.

The findings were based on blockchain records reviewed by investigators, analysis from two cryptocurrency forensic companies and research conducted by independent blockchain researcher Rich Sanders.

The alleged gambling network operated despite gambling being prohibited in Iran and amid restrictions on the country’s domestic financial system.

Investigation Traces Funds Through Shelbit

The investigation found that cryptocurrency transactions connected to the gambling platforms reportedly passed through Shelbit before reaching major international exchanges.

Blockchain records reviewed during the inquiry allegedly showed tens of millions of dollars generated through gambling websites flowing into wallets associated with the Dubai-based exchange.

The investigation also identified alleged financial connections between Shelbit and entities linked to Iran. These included reported links involving Iran’s central bank, cryptocurrency wallets that Israeli authorities have associated with the Islamic Revolutionary Guard Corps and Nobitex, an Iranian cryptocurrency exchange that was sanctioned by the United States earlier this year.

According to the findings, the gambling network was promoted by Iranian social media personalities Sasha Sobhani and Pooyan Mokhtari, both of whom have audiences of millions of followers online. Shelbit founder Siavash Kayvanpour was also linked to the operation.

The three individuals were convicted in Iran in 2023 in connection with an illegal gambling case. However, the two influencers denied allegations that they participated in money laundering activities or efforts to bypass international sanctions. They also rejected claims that they acted on behalf of the Iranian government.

The alleged network reportedly relied on intermediaries and digital payment channels to continue operating outside Iran’s regulated financial structure.

Dubai Regulator Takes Action Against Shelbit

Dubai’s Virtual Assets Regulatory Authority has already taken enforcement action against Shelbit.

The regulator confirmed that it had previously penalized the company for operating without a required licence. On July 24, authorities ordered Shelbit to immediately stop all virtual asset activities after identifying violations related to anti-money laundering and counterterrorism financing requirements.

The allegations have also attracted attention from US authorities. The US Treasury Department said it was aware of the reported findings and was treating the allegations seriously.

The investigation also examined transactions involving major cryptocurrency exchanges. According to Reuters, Binance was identified as one of the platforms that received approximately $676 million from wallets connected to Shelbit.

Binance said it had no direct account relationship with Shelbit. The exchange added that accounts associated with the company were reviewed, frozen when necessary and reported to law enforcement authorities.

Wider Questions Around Crypto And Gambling Networks

The case highlights ongoing concerns surrounding the use of cryptocurrency networks to move funds connected to unlicensed gambling operations.

The investigation described the alleged operation as a broad Farsi-language gambling network involving thousands of websites. Investigators said the platforms generated significant transaction activity before funds moved through cryptocurrency channels.

The alleged activities also raised concerns over possible attempts to bypass sanctions affecting Iran. The investigation reported that blockchain records showed connections between Shelbit-related wallets and entities that have faced regulatory attention.

Dubai authorities’ action against Shelbit came as regulators worldwide continue increasing scrutiny of cryptocurrency businesses and their compliance with financial crime prevention requirements.

The investigation also noted the role of major cryptocurrency platforms in processing transactions connected to wallets associated with the exchange. While Binance said it acted after identifying relevant accounts, the case has drawn attention to the challenges exchanges face when monitoring large-scale blockchain activity.

The allegations remain under investigation, and individuals and entities mentioned in the inquiry have denied certain accusations made against them.