$676M Moved From Iran-Linked Shelbit to Binance

$676 Million in Crypto Moved From Iran-Linked Exchange to Binance – Transfers Continued After Dubai Regulatory Action

Key Takeaways

• At least $676 million in cryptocurrency moved from Dubai-based exchange Shelbit to Binance since May 2024, according to Reuters.
• About $540 million of those transfers occurred after Dubai regulators took action against Shelbit in January 2025.
• Investigators traced roughly $4 billion in total flows through Shelbit since May 2024, including around $125 million from Iran’s central bank.
• Binance stated that Shelbit never held an account on its platform and said it froze and reported relevant accounts when identified.
• Dubai’s Virtual Assets Regulatory Authority cited anti-money laundering and terrorism financing laws in a July 24 notice concerning Shelbit.

Reuters Investigation Links Shelbit to $676 Million in Transfers to Binance

Reuters reports that at least $676 million in cryptocurrency moved from Shelbit, an unlicensed exchange based in Dubai, to Binance since May 2024. Investigators identified Shelbit as being at the center of what they describe as an Iranian sanctions evasion network.

According to the report, approximately $540 million of those transfers took place after Dubai regulators cracked down on Shelbit in January 2025. The continued movement of funds after regulatory action has drawn attention to compliance controls and transaction monitoring.

Binance said it could not match the $676 million figure cited by Reuters. The exchange stated that Shelbit never held an account on its platform and has never been sanctioned. Binance added that when users associated with Shelbit interacted with its platform, its compliance program investigated, froze relevant accounts, and reported them to law enforcement authorities. The company also said that an external analytics firm did not flag the flows as high risk, although it did not name the firm.

Background: Prior US Settlement and Compliance Oversight

The new scrutiny comes after Binance pleaded guilty in November 2023 to violating US money laundering and sanctions laws. The company agreed to pay $4.3 billion in penalties. Prosecutors found that more than $898 million in trades had passed between US and Iranian users on the platform between January 2018 and May 2022.

As part of that settlement, Binance was required to appoint an independent compliance monitor for three years. Shelbit began operating about six months into that monitoring period. The extent of Binance’s cooperation with US investigators has since become a point of dispute, according to the report.

For users of international crypto platforms, this context is relevant because it places the reported transfers within an ongoing compliance and regulatory framework tied to earlier sanctions violations.

Shelbit’s Operations and Physical Presence in Dubai

Shelbit does not maintain a public website, and there is no visible interface for retail trading. Its listed Dubai address reportedly leads to a locked office marked “Velorix Watches Trading LLC,” a company owned by Shelbit founder Siavash Kayvanpour.

A Reuters reporter who visited the location in early July described a three room office containing 13 watches, a cash counting machine, and three staff members. The staff reportedly said they had not heard of Kayvanpour, and the watches were not for sale.

Despite the limited visible infrastructure, investigators traced at least $4 billion in cryptocurrency through Shelbit since May 2024. Of that amount, approximately $125 million originated directly from Iran’s central bank, according to the findings.

Blockchain analysis also linked Shelbit to wallets that Israel associates with Iran’s Islamic Revolutionary Guard Corps. Another counterparty was Nobitex, described as Iran’s largest cryptocurrency exchange.

Connections to Iranian Crypto Flows and Sanctions Enforcement

In June, Washington sanctioned Nobitex using authorities reserved for terrorist financiers. The US Treasury said Nobitex handled more than half of Iran’s crypto inflows in 2025 and facilitated access to global exchanges for regime insiders.

Shelbit is accused of playing a similar role from outside Iran. Reuters reported that more than 2,000 Farsi language betting sites were among Shelbit’s largest customers. Gambling is illegal in Iran and can result in prison sentences and corporal punishment. The law was updated in 2023 to explicitly include online betting.

According to the report, these gambling sites still connect to Iran’s domestic payment system, which is controlled by the country’s central bank. Cybersecurity firm Infoblox assisted Reuters in mapping the network.

On July 24, Dubai’s Virtual Assets Regulatory Authority issued a notice citing the United Arab Emirates’ anti money laundering and terrorism financing law. The regulator stated that Shelbit posed a threat to the integrity of the country’s financial system. Dubai authorities have previously taken similar action, including ordering KuCoin to halt operations in March.

Unresolved Questions About Control and Final Destinations

Reuters reported that it could not establish who inside Iran controlled Shelbit. It also could not determine where most of the transferred cryptocurrency ultimately ended up. Blockchain records showed transaction paths but did not identify controlling individuals.

US authorities are examining the allegations. The Treasury Department said it is taking the Shelbit claims seriously. Earlier this year, listings by the Office of Foreign Assets Control led to stablecoin freezes within hours, illustrating how quickly enforcement actions can affect crypto liquidity and access.

For users of exchanges and crypto betting platforms, the case highlights how cross border transaction flows and sanctions designations can directly impact account access, fund freezes, and platform availability.

Our Assessment

The reported $676 million in transfers from Shelbit to Binance occurred against the backdrop of prior sanctions violations and ongoing compliance monitoring at Binance. Investigators traced billions in flows through Shelbit, including funds linked to Iran’s central bank and sanctioned entities, while Dubai regulators formally cited anti money laundering and terrorism financing laws. Key details, including ultimate control of Shelbit and the final destination of most funds, remain unproven according to the report. The developments place additional focus on transaction monitoring, sanctions enforcement, and regulatory coordination across jurisdictions.