Binance linked to Iranian money-moving operation tied to illegal gambling and sanctions evasion

A Reuters investigation has traced a sprawling sanctions-evasion network from Tehran’s financial system to one of the world’s largest crypto exchanges, and the numbers are hard to ignore. At the center of it sits Shelbit, an unlicensed Dubai-based crypto exchange that processed at least $4 billion in digital assets since May 2024, acting as a financial bridge between Iranian state-linked entities, illegal gambling operations, and global crypto markets.

How the network worked

One of its biggest clients was an illegal Farsi-language gambling network spanning more than 2,000 websites. That operation was run by influencers Sasha Sobhani and Pooyan Mokhtari, both of whom were convicted in Iran on illegal gambling charges in 2023. Despite those convictions, the network kept running, and Shelbit kept processing. At least $250 million flowed through Shelbit specifically tied to those gambling sites.

The exchange also reportedly maintained connections to Nobitex, a sanctioned Iranian crypto platform, and to entities linked to the Iranian Revolutionary Guard Corps, known as the IRGC.

Blockchain analysis conducted as part of the Reuters investigation found that approximately $676 million moved from Shelbit-linked wallets to Binance during the period under review.

Binance’s position and the regulator’s response

Binance confirmed that Shelbit itself never held an account directly with Binance. The company said it conducted internal investigations and froze and reported any accounts found to be connected to the network.

Dubai’s Virtual Assets Regulatory Authority, known as VARA, issued a cease-and-desist order against Shelbit on July 24, 2026, citing unlicensed activity, money laundering, and potential terrorism financing connected to the IRGC. VARA had reportedly begun earlier enforcement actions against Shelbit in 2025.

Why this matters beyond the headlines

For Binance, this is not its first encounter with sanctions-related scrutiny. The exchange reached a major settlement with US authorities in 2023, and its former CEO Changpeng Zhao pleaded guilty to anti-money-laundering violations.

VARA’s willingness to issue a cease-and-desist with IRGC-related terrorism financing language attached is unusually aggressive for a jurisdiction that has actively courted crypto business.

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