Iran routed funds through one of the world's largest illegal gambling networks and an unlicensed Dubai cryptocurrency exchange to circumvent international sanctions, according to a Reuters investigation.
The Dubai office belongs to Shelbit, an unlicensed crypto exchange run by Iranian emigrant Siavash Keyvanpour. Among its main clients is an online casino network comprising more than 2,000 sites, publicly fronted by two Iranian influencers with connections at senior levels of government.
An Iranian court convicted those influencers and Keyvanpour in 2023 on charges related to organising illegal gambling. Gambling is banned in Iran, yet the network retains access to Iran's electronic payments system, which is controlled by the country's central bank, Reuters reported.
Money generated by the illegal gambling operations flows into Shelbit, where it is converted into cryptocurrency and moved through international exchanges, obscuring its origins. Blockchain records show Shelbit transferred hundreds of millions of dollars to major crypto market participants, including Binance, the world's largest exchange.
The gambling network is only one of Shelbit's clients. Reuters said transactions from Iran's central bank and other sanctioned entities also pass through the exchange, making it a tool for bypassing international restrictions.
Shelbit also interacts with cryptocurrency wallets that the Israeli government has linked to the Islamic Revolutionary Guard Corps. The investigation found the IRGC took control of the largest gambling sites accessible inside Iran several years ago and has since used them to move funds abroad.
Shelbit's total transaction volume since May 2024 stands at a minimum of $4 billion. Reuters noted that fund flows into the exchange did not stop even as Iran repeatedly attacked the United Arab Emirates, including a drone strike that landed less than one kilometre from the exchange's office.
On July 29, the United States imposed new sanctions on Iran, accusing it of extorting commercial vessels transiting the Strait of Hormuz and channelling those proceeds to fund the IRGC.
