The $4 Billion Iranian Sanctions Evasion Network: How a Dubai Crypto Exchange and Gambling Empire Moved Money

The Gambling Network: Over 2,000 Sites Fronted by Influencers

Shelbit's largest customer was one of the world's largest illegal gambling networks — more than 2,000 Farsi-language websites offering slots, blackjack, and roulette. The network was publicly promoted by two Iranian social-media influencers:

• Sasha Sobhani (birth name Mohammad Javad), the son of a former senior Iranian diplomat and government minister. His father publicly disavowed him, calling his behavior un-Islamic.
• Pooyan Mokhtari, a singer and influencer who was arrested in Dubai in April 2026 and accused by UAE authorities of financing Iranian terrorist organizations before being expelled and relocating to Hong Kong.

Both men were convicted in Iran in 2023, in absentia, for their roles in illegal gambling sites including abt90 and Hazarat. Both denied all allegations to Reuters. Sobhani stated he "categorically" denied any involvement in sanctions evasion or money laundering.

Connections to Iran's Central Bank and the IRGC

Blockchain data reviewed by Reuters showed Shelbit interacted directly with Iran's central bank, the sanctioned Iranian exchange Nobitex, and wallets that Israel has linked to the Islamic Revolutionary Guard Corps. The investigation found that the IRGC took control of Iran's largest online gambling operations years ago as a mechanism to move money abroad, exploiting the fact that gambling is illegal in Iran but the regime could use it as an unregulated financial pipeline.

Shelbit also handled funds for bitcoin mining operations and other sanctioned Iranian entities.

$676 Million Flowed to Binance

At least $676 million in cryptocurrency flowed from Shelbit-linked wallets to Binance, the world's largest crypto exchange, since May 2024. Of that, at least $540 million landed on Binance after Dubai regulators had already ordered Shelbit to halt operations.

Regulatory Response

Dubai's Virtual Assets Regulatory Authority (VARA) issued a cease-and-desist order to Shelbit on January 2, 2025, directing the unlicensed exchange to stop all operations immediately. However, Shelbit continued processing funds for at least 18 more months before eventually shutting down. On July 24, 2026, VARA fined Shelbit for continuing unlicensed activities and said the case involved potential anti-money laundering and terrorism-financing violations.

The U.S. Treasury Department had previously issued new Iran sanctions targeting crypto exchanges in June 2026.

Key Takeaways

The investigation reveals how cryptocurrency exchanges, particularly those operating in lightly regulated jurisdictions, can become conduits for large-scale sanctions evasion. The combination of an unlicensed exchange, a vast gambling network, and state-linked entities created a pipeline that moved billions despite regulatory orders to stop.