The United States on Friday sanctioned an unlicensed multi-state cryptocurrency exchange, alleging that it processed millions of dollars in cryptocurrency for Iran’s elite Islamic Revolutionary Guard Corps (IRGC) and other groups linked to the Iranian state.
The designation follows a Reuters investigation published on July 31 that identified the Dubai-based exchange, Shelbit, as a hub in a $4 billion Iranian sanctions evasion scheme. The investigation found that Shelbit moved cryptocurrency on behalf of Iran’s central bank, one of the world’s largest illegal online gambling networks, and addresses that the Israeli government linked to the IRGC.
US Sanctions Shelbit Founder
The US Treasury also sanctioned Siavash Kayvanpour, the expatriate Iranian who founded Shelbit and a network of other companies. Treasury accused Kayvanpour of providing material support to the IRGC and Nobitex, Iran’s largest cryptocurrency exchange.
The US sanctioned Nobitex on June 2 for allegedly enabling the Iranian government to circumvent Western sanctions. That action also followed a Reuters investigation into the exchange and its links to a powerful Iranian family.
“Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat,” US Treasury Secretary Scott Bessent said in a statement.
Aban Tether Also Sanctioned
On Friday, the US Treasury also announced sanctions against Aban Tether, an Iran-based cryptocurrency exchange. Treasury alleged that the company processed millions of dollars in transactions for sanctioned Iranian entities, including Nobitex.
Shelbit’s website had been offline for months, leaving customers unable to carry out transactions. However, the exchange continued to process money, including during the US and Israeli war against Iran. The website reactivated the day after the Reuters investigation was published.
Shelbit LLC rejected the allegations in a statement posted on its reactivated website on August 1. The company said it had not knowingly participated in money laundering, terrorist financing, illegal gambling, sanctions evasion, or activity on behalf of any sanctioned, military or governmental organisation. Shelbit also said it had ceased operations in January 2026.
Shelbit and Kayvanpour did not immediately respond to a request for comment.
Crypto Transactions Linked To Iran
Tens of millions of dollars in cryptocurrency that passed through Shelbit came from a suspected Iranian bitcoin mining operation, which generates new digital coins. In addition, many millions of dollars were linked to an illegal gambling network operated by two high-profile Iranian social media influencers, according to Reuters.
“The Iranian regime’s willingness to allow this gambling network to operate highlights its hypocrisy and corruption,” the Treasury said in a statement published on its website.
The Office of Foreign Assets Control (OFAC) designation also came soon after Dubai’s Virtual Assets Regulatory Authority (VARA) issued a notice stating that Shelbit had violated money-laundering and terrorism-financing laws.
“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,” VARA said in a notice published on its website on July 24, shortly after Reuters approached the authority for comment.
VARA did not respond to a request for comment.
With inputs from Reuters