On Friday, August 7, 2026, the United States sanctioned Shelbit, an unlicensed multi-state cryptocurrency exchange based in Dubai, alleging it processed millions of dollars in crypto transactions for Iran’s elite Islamic Revolutionary Guard Corps (IRGC) and other groups linked to the Iranian state.

The sanctions follow a Reuters investigation published on July 31, 2026, which identified Shelbit as the hub of a $4 billion Iranian sanctions evasion scheme. The investigation found that Shelbit moved cryptocurrency on behalf of Iran’s central bank, one of the world’s largest illegal online gambling networks, and to addresses linked by the Israeli government to the IRGC.

The US Treasury also sanctioned Siavash Kayvanpour, the expatriate Iranian founder of Shelbit and a network of other companies, for providing material support to the IRGC and Nobitex, Iran’s largest cryptocurrency exchange. Nobitex itself was sanctioned by the US on June 2, 2026, for enabling the Iranian government to circumvent Western sanctions, also following a Reuters investigation.

Treasury Secretary Scott Bessent stated, “Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat.” Additionally, the Treasury announced sanctions on Aban Tether, an Iran-based crypto exchange, for processing millions of dollars in transactions for sanctioned Iranian entities, including Nobitex.

Despite Shelbit’s website being down for months, preventing customer transactions, the exchange reportedly continued processing money during ongoing US and Israeli actions against Iran.

Shelbit responded on August 1 with a statement on its reactivated website, categorically rejecting any allegations of knowingly participating in money laundering, terrorist financing, illegal gambling, sanctions evasion, or activity on behalf of any sanctioned, military, or governmental organization.

The Dubai Virtual Assets Regulatory Authority (VARA) commented on July 24 that the exposure identified extends beyond consumer protection to more serious cross-border transactions that could impact the integrity of the UAE financial system.

Sources