Dubai's Virtual Assets Regulatory Authority said in a July 24 notice that Shelbit continued providing virtual-asset services without a license, onboarding users without required know-your-customer checks and marketing its services without authorization. VARA said the case involved exposure that “extends beyond consumer protection” and ordered the company to cease all unlicensed activity. The regulator also imposed financial penalties.
Blockchain analysis by two investigative firms and researcher Rich Sanders, reviewed by Reuters, identified at least $676 million moving from Shelbit-linked addresses to Binance wallets since May 2024. About $540 million moved after Dubai regulators fined Shelbit in January 2025. The analysis also linked at least $125 million to Iran's central bank and at least $20 million to a suspected Iranian bitcoin-mining operation. Reuters said the wider network included more than 2,000 Farsi-language gambling sites promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari, with tens of millions of dollars traceable to Shelbit. The exchange also interacted with Nobitex, Iran's largest crypto exchange. Binance told Reuters that Shelbit never held an account on its platform, but said associated user accounts were investigated, frozen and reported to law enforcement. It disputed the reported post-fine total.
The investigation does not establish who inside Iran controlled Shelbit, whether the IRGC directly operated the exchange or gambling network, or where much of the crypto ended up. The influencers linked to the gambling sites denied knowing Shelbit or any Iranian state involvement; Shelbit's founder and Iran's government did not respond to Reuters. The U.S. Treasury Department said it was aware of the allegations and taking them seriously. The next focus is whether VARA's enforcement, U.S. sanctions authorities and Binance's compliance review produce further action against the network or the accounts that handled its funds.
