Illegal gambling network funnels $4B in crypto through unlicensed Dubai exchange

An unlicensed cryptocurrency exchange operating out of Dubai processed at least $4 billion in crypto since May 2024, serving as the financial backbone for a sprawling network of more than 2,000 illegal Iranian gambling websites. The operation represents one of the largest sanctions evasion schemes uncovered since 2016. The exchange, called Shelbit, didn’t just move money for online casinos. Blockchain investigators traced connections to the Iranian central bank and entities tied to the Islamic Revolutionary Guard Corps (IRGC), turning what might sound like a garden-variety gambling bust into something with far broader geopolitical implications. How the money moved A Reuters investigation laid out the mechanics. The gambling network, promoted by Iranian influencers Sasha Sobhani and Pooyan Mokhtari, operated through thousands of illegal betting sites targeting Iranian users. The proceeds flowed through Shelbit, which converted and transferred the crypto to access global financial markets that sanctions are specifically designed to block. $676 million in crypto transactions were traced directly from Shelbit to Binance, one of the world’s largest exchanges. Sobhani and Mokhtari, along...