US sanctions Dubai crypto exchange for aiding Iran's IRGC, following a Reuters report

In a Friday update, the United States Treasury sanctioned Dubai's Shelbit cryptocurrency exchange, alleging it processed millions in crypto transactions for Iran's elite Islamic Revolutionary Guard Corps (IRGC) and other state-linked groups. This move followed a July 31 Reuters investigation revealing Shelbit's central role in a $4 billion Iranian sanctions evasion scheme.

The investigation uncovered that Shelbit facilitated transactions for Iran's central bank, the largest online gambling operation globally, and addresses tied to the IRGC by Israel. Additionally, the Treasury sanctioned Shelbit's founder, Siavash Kayvanpour, and his network for supporting the IRGC and Iran's main crypto exchange, Nobitex, which was sanctioned on June 2 for aiding Iran's financial circumvention of Western sanctions.

Despite Shelbit's website being offline for months, it resumed operations the day after the Reuters report. The exchange claimed it did not knowingly carry out illegal activities and stated it ceased operations in January 2026. Tens of millions of dollars in crypto transactions passed through Shelbit, originating from an Iranian bitcoin mining operation and linked to an illegal gambling network.

The Treasury's action comes after Dubai's Virtual Assets Regulatory Authority (VARA) found Shelbit in violation of anti-money laundering and terrorism financing laws. VARA emphasized the exchange's actions pose a threat to the UAE's financial system integrity.