The United States has taken decisive action against a Dubai-based cryptocurrency exchange, accusing it of playing a pivotal role in a vast sanctions evasion network benefiting Iran. The Shelbit Exchange an unlicensed multi-state platform, has been sanctioned for allegedly facilitating millions of dollars in cryptocurrency transactions for Iran’s elite Islamic Revolutionary Guard Corps (IRGC) and other state-linked entities.
This move follows a comprehensive investigation that uncovered Shelbit’s central role in a $4 billion Iranian sanctions evasion scheme. The exchange was found to have moved crypto on behalf of Iran’s central bank, a major illegal online gambling operation, and addresses linked to the IRGC by the Israeli government.
The Shelbit Exchange and Its Alleged Activities
The U.S. Treasury has also sanctioned Siavash Kayvanpour the expatriate Iranian founder of Shelbit and its associated companies, for providing material support to the IRGC and Nobitex Iran’s largest cryptocurrency exchange. Nobitex itself was previously sanctioned in June 2026 for enabling the Iranian government to bypass Western sanctions.
According to the investigation, Shelbit’s website, which had been inactive for months, was reactivated the day after the investigation was published. Despite its prior dormancy, the exchange reportedly continued processing funds, even amid the U.S. and Israeli conflict with Iran. Shelbit issued a statement on its reactivated site, asserting its innocence and claiming to have ceased operations in January 2026.
The Extent of the Sanctions Evasion Scheme
The investigation revealed that tens of millions of dollars in crypto passing through Shelbit originated from a suspected Iranian bitcoin mining operation. Many more millions were tied to an illegal gambling network run by prominent Iranian social media influencers. The Treasury commented on its website, “The Iranian regime’s willingness to allow this gambling network to operate highlights its hypocrisy and corruption.”
These sanctions come shortly after Dubai’s Virtual Assets Regulatory Authority (VARA) issued a notice accusing Shelbit of violating money-laundering and terrorism financing laws. VARA stated, “The exposure identified by VARA extends beyond consumer protection to more egregious cross-border transactions with the propension to impact the integrity of the UAE financial system.”
The Broader Implications of the Sanctions
The U.S. Treasury’s action is part of a broader effort to dismantle the illicit financial networks that support the Iranian regime. Secretary of the Treasury Scott Bessent stated, “Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat.”
The Treasury also announced sanctions against Aban Tether an Iran-based crypto exchange, for processing millions in transactions for sanctioned Iranian entities, including Nobitex. This action underscores the U.S.’s commitment to combating illicit finance and sanctions evasion in the cryptocurrency space.
The sanctions against Shelbit and its founder highlight the ongoing challenges in regulating cryptocurrency exchanges and preventing their use for illicit activities. As the cryptocurrency market continues to evolve, so too must the efforts to ensure its integrity and prevent its misuse for sanctions evasion and other illegal purposes.
