Iran-Linked Crypto Exchange Sent $676M to Binance, Reuters Finds
A Reuters investigation reveals that an Iranian-linked crypto exchange sent $676 million to Binance as part of a $4 billion sanctions-evasion scheme tied to gambling sites.
Recent revelations have brought to light a significant financial network connected to Iranian gambling sites that processed upwards of $4 billion through cryptocurrencies. The investigation, conducted by Reuters and published yesterday, highlights that a staggering $676 million in crypto flowed to Binance from wallets linked to Shelbit, an unlicensed crypto exchange based in Dubai. This exchange has been tied to a wide-ranging sanctions-evasion scheme involving Iranian entities.
What Did the Investigation Uncover?
According to the findings, Shelbit emerged as a central player, processing at least $4 billion since May 2024, with substantial transactions aimed at Binance. Notably, around $540 million of this amount was transferred after Dubai’s crypto regulatory body penalized Shelbit in 2025 for operating without a license.
The investigation revealed that Shelbit catered to a Farsi-language gambling network that spans over 2,000 websites. The reported ties of these operations to Iran’s central bank and other sanctioned entities raise serious concerns regarding the adherence to international sanctions.
How Are Players Involved?
The mechanics of the payments to Binance are alarming. Through blockchain analysis, it was traced that at least $125 million moved directly from Iran’s central bank to Shelbit, while another $20 million was funneled through intermediary wallets from an unnamed Iranian Bitcoin mining entity. Rich Sanders, a blockchain investigator with expertise in Iran, expressed concerns, stating, "Shelbit is an IRGC operation, and that’s plain as day." This statement hints at the potential involvement of Iran’s Islamic Revolutionary Guard Corps (IRGC) in using online gambling as a conduit for overseas funds.
What Is Binance’s Response?
In response to these investigative findings, Binance has announced that Shelbit has never maintained an account on its platform and emphasized that the exchange itself was not sanctioned. However, the sheer volume of transactions linked to Shelbit cannot be overlooked. While Binance acknowledged the flow of funds, they maintained that these transactions were not categorized as high risk by an unnamed independent blockchain analytics firm. Furthermore, Binance asserted that its compliance team actively investigated associated users, froze relevant accounts, and notified law enforcement about any suspicious activities.
Are Regulatory Actions Being Taken?
Beyond Binance, Dubai’s Virtual Assets Regulatory Authority is currently looking into Shelbit’s alleged misconduct involving sanctions evasion and money laundering activities. Earlier this month, the agency took a definitive stance by ordering the exchange to halt all unlicensed crypto operations.
What Does This Mean for the Crypto Landscape?
The findings of this investigation highlight the complex dynamics in the crypto market, especially regarding regulatory compliance and the movement of funds from high-risk jurisdictions. As the crypto landscape continues to evolve, incidents like this underscore the importance of thorough due diligence by traders and exchanges alike.
If you’re trading cryptocurrencies, it’s essential to choose platforms that prioritize compliance and security. Platforms like Binance, Bybit, Bitget, OKX, and MEXC are known for their robust compliance systems and can offer competitive rates for your trading needs. For exclusive bonuses with Binance, check out our Binance referral page.
- A recent Reuters investigation revealed that $676 million in crypto was sent to Binance from wallets linked to Shelbit.
- Shelbit has processed over $4 billion since May 2024, allegedly supporting an Iranian gambling network.
- Transactions included funds traced back to Iran’s central bank, raising concerns over sanctions evasion.
- Binance claims its compliance team acted on related activities but acknowledged the significant volume of funds involved.
- Dubai’s regulatory authorities are investigating Shelbit for alleged money laundering and sanctioned operations.