Iranian Gambling Network Allegedly Moved $4 Billion Through Dubai Exchange

A Farsi-language network of more than 2,000 illegal gambling websites helped move at least $4 billion in cryptocurrency out of Iran, according to a Reuters investigation published July 31, 2026.

The money allegedly passed through Shelbit, an unlicensed exchange run from an office above a budget hotel in Dubai's Deira district. At least $676 million reached Binance from Shelbit-linked addresses since May 2024, the investigation found, and $125 million came directly from Iran's central bank.

Dubai Regulator Fines the Exchange at the Center

Dubai's Virtual Assets Regulatory Authority (VARA) published a notice of fines against Shelbit General Trading on July 24, 2026. The regulator said the firm served customers without a license and skipped know-your-customer checks, the identity verification required before an account opens.

VARA had already issued a cease-and-desist notice against Shelbit on Jan. 2, 2025. About $540 million reportedly moved afterward.

Siavash Kayvanpour, the Iranian expatriate identified in the investigation as Shelbit's operator, did not respond. Binance said Shelbit never held an account there, and that it froze related accounts and told law enforcement.

Investigators Point to the IRGC, but Proof Stops Short

Two Iranian influencers fronted the network, the report said. Sasha Sobhani promoted it to 3.7 million Instagram followers from a villa in Madrid.

"I categorically deny any involvement in money laundering, sanctions evasion, terrorism financing or moving funds on behalf of the Iranian government."

Sobhani told Reuters his role was paid social media advertising. Singer Pooyan Mokhtari denied belonging to the Islamic Revolutionary Guard Corps (IRGC) or any military group.

The investigation found the IRGC took control of the largest gambling sites reachable inside Iran years ago and used them to move money abroad, but could not establish whether the Guards controlled Shelbit. Offshore sites aimed at one country's players recur elsewhere: Türkiye's lottery administration named Curaçao and Malta in July as licensing hubs for sites targeting Turkish gamblers.

A U.S. Treasury spokesman said the department "is aware of these allegations and is taking them very seriously." VARA's investigation is continuing, and no U.S. sanctions designation against Shelbit has been announced.