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Reuters Investigation Links Dubai Exchange to Thousands of Gambling Sites
A Dubai-based cryptocurrency exchange allegedly became a financial gateway for one of the largest illegal online gambling operations uncovered in recent years, processing billions of dollars while offering a route around sanctions imposed on Iran.
The findings come from an extensive Reuters investigation, which traced cryptocurrency transactions across blockchain records and identified what investigators describe as a sprawling Farsi-language gambling network tied to more than 2,000 websites. At the center of the operation sits Shelbit, an unlicensed crypto exchange that reportedly handled at least $4 billion in transactions from May 2024 onward.
The inquiry combined blockchain analysis from two cryptocurrency forensic firms with research conducted by independent blockchain investigator Rich Sanders. Together, the evidence pointed to a network that allegedly funneled gambling proceeds through Shelbit before the funds reached larger international cryptocurrency exchanges.
Influencers Named in the Network
Reuters reported that the gambling platforms were promoted by Iranian social media figures Sasha Sobhani and Pooyan Mokhtari, both of whom command audiences in the millions. The investigation also linked Shelbit founder Siavash Kayvanpour to the wider operation.
All three were convicted in Iran in 2023 in connection with an illegal gambling case. Reuters noted that the influencers rejected allegations of money laundering or helping evade international sanctions, while also denying any relationship with the Iranian government.
The network is alleged to have continued operating despite gambling being prohibited in Iran and despite strict controls over the country’s domestic financial system.
Crypto Trail Reached Major Exchanges
Blockchain records reviewed during the investigation indicate that tens of millions of dollars generated by the gambling sites flowed through Shelbit before arriving at major cryptocurrency platforms.
Reuters also reported alleged financial links between Shelbit and Iran’s central bank, as well as wallets that Israeli authorities have associated with the Islamic Revolutionary Guard Corps. The investigation further identified connections with Nobitex, the Iranian cryptocurrency exchange sanctioned by the United States earlier this year.
Dubai regulators had already moved against Shelbit before the Reuters report was published. The emirate’s Virtual Assets Regulatory Authority confirmed it had penalized the company for operating without a license. On July 24, the regulator ordered an immediate halt to all virtual asset activities, citing breaches of anti-money laundering and counterterrorism financing rules.
The allegations have also drawn attention in Washington. The US Treasury Department indicated to Reuters that it is aware of the reported findings and is treating the matter seriously.
Binance was identified in the investigation as one of the cryptocurrency exchanges that received approximately $676 million from wallets connected to Shelbit. The exchange maintained that it never had a direct account relationship with Shelbit itself and said accounts linked to the exchange were investigated, frozen where appropriate, and reported to law enforcement authorities.
Source: www.gamblingnews.com
