Shelbit processed $250M for illegal Iranian gambling network, Reuters investigation finds

A crypto exchange nobody has heard of just became one of the most consequential names in sanctions enforcement. Shelbit, an unlicensed Dubai-based trading platform operated by Iranian expatriate Siavash Kayvanpour, has processed at least $4 billion since May 2024, according to a Reuters investigation published July 31, 2026. Buried inside that figure: $250 million funneled specifically through illegal gambling sites.

How the network worked

Shelbit sits at the center of what Reuters describes as one of the world’s largest illegal gambling operations, a network spanning more than 2,000 platforms. Those gambling sites are identified as a primary customer of Shelbit, using the exchange to process and move funds.

According to the investigation, flows from Shelbit reached major cryptocurrency platforms including Binance. Binance responded directly, saying Shelbit never held an account with them, and that the company has taken steps to freeze associated accounts.

The U.S. Treasury confirmed it is reviewing the allegations. Shelbit’s network is alleged to connect to Iran’s sanctioned Central Bank and to wallets associated with the Islamic Revolutionary Guard Corps. Direct IRGC ties remain unconfirmed, but the financial flows analyzed by Reuters strongly suggest the connection.

Kayvanpour and two influencers linked to the gambling operation were convicted in absentia in Iran in 2023 for illegal gambling activities.

The anatomy of an unlicensed exchange

Shelbit’s physical profile is almost deliberately inconspicuous. No website. An office above a budget hotel in Dubai’s Deira district, a dense commercial neighborhood that has long attracted informal money-transfer businesses and trading operations.

What this means for the broader market

The U.S. Treasury’s decision to publicly confirm it is reviewing the allegations is a signal, not a conclusion. Treasury reviews of this kind can lead to formal designations under the Office of Foreign Assets Control, which would make it illegal for U.S. persons and entities to transact with the named parties. An OFAC designation for Shelbit, Kayvanpour, or connected entities would require every compliant exchange globally to immediately block associated wallets.

The gambling network dimension adds a separate regulatory vector. Illegal online gambling enforcement is handled by a completely different set of agencies than sanctions enforcement, and Shelbit appears to have attracted the attention of both simultaneously. Platforms that processed any volume connected to this network, even unknowingly, face the prospect of extended investigations and potential asset freezes while regulators untangle the flows.

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