A complex investigation by Reuters has revealed what could prove to be one of the world’s largest illegal online gambling networks allegedly used to move billions of dollars through cryptocurrency while helping sanctioned Iranian entities get access to international financial markets.
2,000 Platforms Possibly Involved
The operation, says the in-depth inquiry, focused on Shelbit, an unlicensed cryptocurrency exchange located in Dubai that allegedly processed a minimum of $4 billion starting May 2024 onward.
Blockchain data reviewed by Reuters and analyzed by two cryptocurrency investigation companies, together with independent blockchain researcher Rich Sanders, allegedly connects the exchange to a vast Farsi-language gambling network spanning more than 2,000 websites.
The report states that the gambling operation is promoted by Iranian social media personalities Sasha Sobhani and Pooyan Mokhtari, both with millions of followers online.
Reuters reports that both men, along with Shelbit founder Siavash Kayvanpour, were convicted in Iran in 2023 in connection with an illegal gambling case.
The influencers denied their involvement in money laundering and attempts to evade sanctions and claimed they did not work on behalf of the Iranian government.
Tens of Millions
Investigators claim the gambling network continued operating despite gambling being illegal in Iran and despite the country’s tightly controlled domestic payment infrastructure.
According to Reuters, blockchain records show tens of millions of dollars generated through the gambling sites flowing into Shelbit before reaching major cryptocurrency platforms.
The investigation also alleges that Shelbit maintained financial connections with Iran’s central bank with wallets linked by Israeli authorities to the Islamic Revolutionary Guard Corps, and via Nobitex, an Iranian cryptocurrency exchange sanctioned by the United States earlier this year.
Dubai regulators have already taken action against the company. Reuters reports that Dubai’s Virtual Assets Regulatory Authority confirmed it had previously penalized Shelbit for operating without a license.
On July 24, the regulator ordered the company to immediately stop all virtual asset activities, citing violations related to anti-money laundering and counterterrorism financing requirements.
The US Treasury Department told Reuters it is aware of the allegations and is treating them seriously.
Binance, which Reuters identified as one of the exchanges that received around $676 million from Shelbit-connected wallets, said the company had no direct account relationship with Shelbit itself.
Binance added that when accounts associated with the exchange were identified, they were investigated, frozen where appropriate, and reported to law enforcement authorities.