Reuters reports Iran-linked exchange Shelbit processed $4B+ through Binance since May 2024, allegedly evading U.S. sanctions via networks tied to IRGC and Iranian gambling operators.
Regulation & Gov ·
Shelbit, a Dubai-based cryptocurrency exchange with reported links to Iran, sent $676 million to Binance as part of an alleged sanctions-evasion scheme, according to Reuters reporting. The exchange processed over $4 billion through networks connected to Iranian gambling operators, the Iranian central bank, and the Islamic Revolutionary Guard Corps since May 2024.
The flow of funds appears to have moved through intermediaries designed to obscure the origin and destination of capital, allowing what investigators describe as circumvention of U.S. financial sanctions. Binance's role and knowledge of the source of these transfers remain unclear from available reporting, as does whether the exchange took steps to detect or block the activity.
The investigation raises questions about compliance procedures at major cryptocurrency platforms and the effectiveness of sanctions enforcement in the digital asset space. It remains unclear what enforcement actions, if any, regulatory authorities intend to pursue against Shelbit, Binance, or the intermediaries involved in the transfers.