A sophisticated $4 billion sanctions-evasion network has allegedly helped Iran move money through illegal online gambling operations, cryptocurrency transactions and an unlicensed Dubai-based crypto exchange. The network gave sanctioned Iranian entities access to global cryptocurrency markets despite Western restrictions, according to the Reuters investigation.The operation centred on Shelbit, a Dubai-based cryptocurrency exchange that investigators say acted as a financial hub linking Iran’s central bank, a Farsi-language gambling network comprising more than 2,000 websites, suspected state-backed bitcoin mining operations and major international crypto exchanges. Blockchain data reviewed by Reuters showed Shelbit processed at least $4 billion in cryptocurrency since May 2024, including hundreds of millions of dollars routed to Binance, the world’s largest crypto exchange.The gambling network is fronted by two flashy Iranian influencers with high-level government connections – Sasha Sobhani, operating from a villa in Madrid, and Pooyan Mokhtari, who until recently was based in a luxury hotel in Hong Kong. Both men were convicted in an Iranian illegal gambling case in 2023 along with Shelbit founder Siavash Kayvanpour.
How the network operates
Gambling is outlawed in Iran, punishable by lashing and prison. Yet the gambling network identified by Reuters has access to Iran’s online payments system, which is closely overseen by the central bank.Shelbit is the hub of the operation, through which the gambling network, the central bank and other sanctioned Iranian entities have access to global crypto markets. The exchange has moved hundreds of millions of dollars to some of the most prominent players in crypto, including the world’s biggest exchange, Binance.Shelbit also interacts directly with Iran’s central bank and with wallets the Israeli government has linked to the Islamic Revolutionary Guard Corps. Some of the crypto flowing to Shelbit came from an Iranian bitcoin mining operation, which mints new digital coins, the investigation found.“This is by far the biggest Iranian illegal gambling network ever discovered and one of the biggest in the world,” said John Wojcik, a former researcher who investigated illegal gambling for the UN Office on Drugs and Crime.
IRGC’s role in the economy
The revelation shows the ingenuity behind Iran’s ability to evade sanctions. The IRGC has played a pivotal role in keeping the economy afloat, and funding Iran and it’s proxies military capabilities.“When it comes to gambling, the IRGC learned the Islamic Republic’s most lucrative lesson early: declare something illegal, then control both the prohibition and the black market,” said Miad Maleki, who helped design US sanctions policy on Iran at the Treasury Department’s Office of Foreign Assets Control.
Operation under scrutiny
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Dubai’s Virtual Assets Regulatory Authority is investigating Shelbit’s alleged role in helping Iran launder money and evade sanctions, according to a person with direct knowledge of the case. On July 24, VARA issued a notice saying Shelbit was in violation of money-laundering and terrorism financing laws, ordering it to “cease and desist immediately.”The UAE Ministry of Foreign Affairs said it adheres to international standards and works closely with partners to disrupt illicit financial flows.Shelbit has sent hundreds of millions in crypto to Binance, including at least $540 million after VARA fined Shelbit last year. Binance said Shelbit had never had a Binance account nor been sanctioned, and that the transactions were not deemed high risk. The company did not dispute processing the funds.Binance was fined $4.3 billion in 2023 by the US for breaking anti-money laundering rules, including processing Iranian crypto trades.Reuters said the investigation highlights how cryptocurrency, online gambling and cross-border financial networks have become increasingly important tools in Iran’s efforts to bypass international sanctions and move billions of dollars outside the traditional banking system.
