Reuters: Illegal Gambling Empire Helped Move Billions for Iran

A Dubai-based cryptocurrency exchange allegedly helped process billions of dollars for one of the world’s largest illegal online gambling networks while serving as a hub for Iranian sanctions evasion, according to a Reutersinvestigation.

Shelbit, an unlicensed crypto exchange based in Dubai, processed at least $4 billion in cryptocurrency since May 2024, according to Reuters. Blockchain data viewed by the news agency allegedly links the exchange to a sprawling Farsi-language gambling operation comprising more than 2,000 websites, Iran’s central bank, and other sanctioned Iranian entities.

John Wojcik, former senior threat researcher at Infoblox, told Reuters the gambling network was the largest ever identified in Iran and one of the biggest in the world.

Influencers Front Gambling Empire

The gambling platforms are promoted by two Iranian musicians and social media influencers, Sasha Sobhani and Pooyan Mokhtari, who have amassed millions of followers by showing off their lavish lifestyles featuring supercars, yachts and private jets.

Reuters reported that both men, along with Shelbit founder Siavash Kayvanpour, were convicted in absentia in Iran in 2023 over illegal gambling activities.

Despite gambling being illegal in Iran, Reuters found the websites appeared to have access to the country’s tightly controlled electronic payment system, which is overseen by Iran’s central bank.

Former Iranian officials interviewed by Reuters alleged the Islamic Revolutionary Guard Corps (IRGC) gradually took control of the country’s lucrative online gambling industry and used it to move money abroad. The news agency said it could not independently determine whether the IRGC directly controlled the gambling network or Shelbit.

Dubai Action, Binance Response

Reuters reported that Dubai’s Virtual Assets Regulatory Authority (VARA) took enforcement action against Shelbit this year for operating without a license and later ordered it to cease operations, citing alleged anti-money laundering and terrorism financing violations.

At least $676 million in cryptocurrency flowed from Shelbit-linked wallets to Binance, according to blockchain analysis reviewed by Reuters.

Binance told Reuters that Shelbit never held a Binance account and said accounts associated with the exchange were investigated, frozen, and reported to law enforcement where appropriate.

The company disputed parts of Reuters‘ analysis but did not deny processing transactions linked to Shelbit.

Sobhani denied any involvement in money laundering, sanctions evasion, or financing terrorism, while Mokhtari denied links to the IRGC and said he was unfamiliar with Shelbit.

Neither Iranian authorities nor Kayvanpour responded to Reuters’ requests for comment.

The U.S. Treasury Department told the news agency it was aware of the allegations and was “taking them very seriously.”