US blacklists Dubai crypto exchange over alleged Iran sanctions evasion
The US sanctioned Dubai-based crypto exchange Shelbit and its founder for allegedly processing millions for Iran's IRGC and other state-linked groups.
The United States has imposed sanctions on a Dubai-based cryptocurrency exchange, Shelbit, and its founder, alleging the platform processed millions of dollars in digital assets for Iran's Islamic Revolutionary Guard Corps (IRGC) and other entities tied to the Iranian state.
The US Treasury announced the action on Friday, accusing the unlicensed exchange of serving as a key node in a broader scheme to evade Western sanctions. The designation follows a recent investigation that identified Shelbit as a hub for moving cryptocurrency on behalf of Iran's central bank, as well as to addresses linked by Israeli authorities to the IRGC.
Treasury Secretary Scott Bessent said in a statement that the department would "hunt down and dismantle the illicit financial networks that keep the regime afloat."
The sanctions also target Siavash Kayvanpour, an expatriate Iranian who founded Shelbit and a network of related companies. The Treasury said Kayvanpour provided material support to the IRGC and to Nobitex, Iran's largest crypto exchange, which was itself sanctioned in June for similar reasons.
According to the Treasury, tens of millions of dollars that flowed through Shelbit originated from a suspected Iranian bitcoin mining operation, while millions more were linked to an illegal gambling network run by two prominent Iranian social media influencers. The department criticised the Iranian regime for allowing the gambling network to operate, calling it a sign of "hypocrisy and corruption."
Shelbit's website had been offline for months, but the exchange reportedly continued processing transactions. The site was reactivated the day after the investigation was published. In a statement on August 1, Shelbit rejected any suggestion that it knowingly participated in money laundering, terrorist financing, or sanctions evasion, adding that it had ceased operations in January 2026.
The US action comes after Dubai's Virtual Assets Regulatory Authority (VARA) issued a notice saying Shelbit had violated money-laundering and terrorism financing laws. VARA noted that the exposure extended beyond consumer protection to cross-border transactions that could impact the integrity of the UAE financial system.