A Reuters investigation alleges that a Dubai-based cryptocurrency exchange played a central role in a massive sanctions-evasion network, processing at least $4 billion in digital assets tied to Iranian interests, including entities linked to online gambling and the Islamic Revolutionary Guard Corps (IRGC).

According to the investigation, the exchange—identified as Shelbit—operates out of Dubai despite reportedly lacking a license and is managed by an Iranian expatriate. Reuters said its findings were based on transaction data supplied by two cryptocurrency investigative firms along with an independent blockchain analyst.

The report states that one of Shelbit’s largest clients is a sprawling Farsi-language online gambling operation consisting of more than 2,000 websites. The network is reportedly controlled by two Iranian social media influencers with ties to the Iranian government. Reuters noted that both men, along with Shelbit’s operator, were convicted in Iran in 2023 in an illegal gambling case.

Although gambling is outlawed in Iran and punishable under the country’s laws, Reuters reported that the gambling network nevertheless has access to Iran’s online payment infrastructure, which falls under the supervision of the Iranian central bank.

Investigators told Reuters that blockchain records traced tens of millions of dollars in cryptocurrency flowing from the gambling operation to Shelbit. Based on the available data, they estimate the exchange has handled at least $4 billion in digital assets since May 2024.

The investigation also alleges that Shelbit moved hundreds of millions of dollars in cryptocurrency through major global platforms, including Binance. Reuters further reported that the exchange conducted transactions involving wallets that the Israeli government has linked to the IRGC, Iran’s central bank, and Nobitex, the Iranian cryptocurrency exchange that was sanctioned by the United States earlier this year.

According to Reuters, investigators also traced a portion of the cryptocurrency reaching Shelbit to what they identified as an Iranian bitcoin mining operation.

Reuters said its investigation drew on interviews with more than 30 sources, including former IRGC affiliates, a former Iranian government official, senior insiders familiar with the alleged network, and other individuals with firsthand knowledge of its operations.

{Matzav.com}