The United States on Friday imposed sanctions on Dubai-based cryptocurrency exchange Shelbit, its founder Siavash Kayvanpour and a network of associated companies. It alleged that the company processed millions of dollars in digital assets for Iran’s Islamic Revolutionary Guard Corps, Iran’s central bank and other entities linked to the Iranian state.The US treasury department announced the action as part of a wider crackdown on sanctions evasion through cryptocurrency networks. It also sanctioned Aban Tether, an Iran-based crypto exchange, accusing it of processing millions of dollars in transactions for sanctioned Iranian entities, including Nobitex, Iran’s largest cryptocurrency exchange.Announcing the measures, US treasury secretary Scott Bessent said, “Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat.”A Reuters investigation published on July 31 identified Shelbit as the hub of a $4 billion Iranian sanctions evasion network. The report also said that the exchange had moved cryptocurrency on behalf of Iran’s central bank, one of the world’s largest illegal online gambling networks and wallet addresses linked by the Israeli government to the IRGC.The US treasury accused Kayvanpour of providing material support to both the IRGC and Nobitex. The United States had already sanctioned Nobitex on June 2 for allegedly enabling the Iranian government to circumvent Western sanctions.According to Reuters, tens of millions of dollars that passed through Shelbit came from a suspected Iranian bitcoin mining operation, while millions more were linked to an illegal gambling network run by two prominent Iranian social media influencers. Referring to the gambling operation, the Treasury said, “The Iranian regime’s willingness to allow this gambling network to operate highlights its hypocrisy and corruption.“Although Shelbit’s website had been inaccessible for months, preventing customers from carrying out transactions, Reuters reported that the exchange continued processing funds even during the recent US and Israeli military campaign against Iran. The website reappeared the day after the Reuters investigation was published.In a statement posted on its reactivated website on August 1, Shelbit denied the allegations. “Shelbit LLC categorically rejects any suggestion that the company knowingly participated in money laundering, terrorist financing, illegal gambling activity, sanctions evasion, or activity on behalf of any sanctioned, military, or governmental organisation,” it said. The company added that it had ceased operations in January 2026.The US action comes shortly after Dubai’s Virtual Assets Regulatory Authority issued a notice stating that Shelbit violated anti-money laundering and counter-terrorism financing regulations.In a notice published on July 24, VARA said, “The exposure identified by VARA extends beyond consumer protection to more egregious cross-border transactions with the propensity to impact the integrity of the UAE financial system.”
