Reuters: Dubai shell exchange "Shelbit" allegedly funneled at least $4B tied to Iran into global crypto markets
AI Market Summary
A Reuters investigation alleges an unlicensed Dubai exchange (Shelbit) processed ~$4B tied to Iranian interests, with large flows reportedly routed to Binance (~$676M). The cease-and-desist action and potential OFAC follow-up elevate sanctions and compliance risk across centralized exchanges, increasing scrutiny on transaction monitoring, counterparties, and on/off-ramp activity. Near-term market impact centers on exchange-related tokens and broader crypto risk appetite amid heightened enforcement sensitivity.
Impact level
● High
Affected assets
BNB/USDT-1.00%
AI Insight · BNB/USDTAI Insight
▼ Bearish
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A Reuters investigation says an unlicensed Dubai-based crypto exchange, Shelbit, has processed at least $4 billion for Iranian interests since May 2024, channeling flows from a network of roughly 2,000 illegal gambling sites into global crypto markets.
According to Reuters, the gambling websites were promoted by Iranian influencers with millions of followers and routed crypto to Shelbit. The news agency traced $125 million in inflows to Shelbit from Iran's central bank and $20 million from a suspected Iranian Bitcoin mining operation, and linked Iran's central bank and IRGC-connected wallets to the pipeline.
Dubai's regulator issued a cease-and-desist order against Shelbit last week. The U.S. Treasury's Office of Foreign Assets Control (OFAC) said it is taking the findings seriously.
Reuters also reported that more than $676 million flowed from Shelbit to Binance over the period. Binance said its compliance program froze the relevant accounts and reported them to law enforcement.
