VARA Cracks Down on Shelbit’s $4B Iran Sanctions Network

Shelbit Linked Gambling Sites to Iran's Central Bank

Dubai's Virtual Assets Regulatory Authority (VARA) issued a cease-and-desist order and monetary fines on Friday, July 24, 2026, against Shelbit General Trading L.L.C., an unlicensed crypto exchange found to have processed at least $4 billion for an Iranian gambling network and sanctioned institutions since May 2024. Run by Iranian expatriate Siavash Kayvanpour, Shelbit served as the hub of a money-moving operation giving Iran's central bank, the IRGC, and other sanctioned entities access to global crypto markets, according to Reuters. The network connected over 2,000 illegal gambling platforms alongside wallets tied to the Central Bank of Iran and sanctioned exchange Nobitex.

Binance Ties Add to $4B Sanctions Evasion Fallout

Shelbit sent hundreds of millions of dollars in crypto to Binance, the world's largest exchange. Binance said Shelbit never held an account on its platform and was not sanctioned, while acknowledging it processed hundreds of millions of dollars connected to Shelbit. The exchange said it investigated linked users, froze relevant accounts, and reported them to law enforcement. The disclosure adds another complication to Binance's compliance history, which includes a $4.3 billion settlement with US authorities in 2023.

Dubai Regulator Issues Cease-and-Desist Over Shelbit's KYC Failures

VARA's order cited the exchange for operating without a license and failing to comply with Know Your Customer regulations. The US Treasury Department confirmed awareness of the allegations, with the Office of Foreign Assets Control reviewing the matter and signaling further action against Iranian regime-linked digital assets.
The case underscores persistent gaps in exchange-level due diligence, likely intensifying regulatory pressure on unlicensed intermediaries operating across Gulf crypto hubs.

Expect expanded OFAC scrutiny of crypto flows tied to Iranian sanctions evasion, potentially prompting exchanges to tighten counterparty screening for Middle East-based trading relationships.

TRM Labs senior analyst John Wojcik called it the biggest Iranian illegal gambling network ever discovered and among the largest globally.