The Block reported on August 2, 2026, that Binance issued its first public comment on a Reuters investigation tracing $676 million in Iran sanctions-evasion flows to its wallets. The unlicensed Dubai exchange behind those flows, Shelbit, processed at least $4 billion since May 2024 as a hub linking Iranian gambling sites, Iran’s central bank and entities tied to the Islamic Revolutionary Guard Corps, Reuters found.
About $540 million of the money that reached Binance moved after Dubai’s Virtual Assets Regulatory Authority (VARA) fined Shelbit in January 2025 for operating unlicensed.
How Shelbit’s Network Reached Binance
Shelbit, run by Iranian expatriate Siavash Kayvanpour, has processed at least $4 billion since May 2024, according to The Block. Its biggest customer was a Farsi-language gambling network of over 2,000 sites fronted by influencers Sasha Sobhani and Pooyan Mokhtari.
Data also tied Shelbit to Iran’s central bank, IRGC-linked wallets Israel has flagged, and Nobitex, the Iranian exchange Treasury sanctioned in June for processing over half of Iran’s 2025 digital-asset inflows, per The Block’s earlier report.
Researcher Rich Sanders said he flagged Shelbit’s Iran ties to Binance in October 2025, and transfers kept moving afterward. In its August 2 update, Binance disputed the $540 million post-fine figure and said Shelbit never held a direct account on the platform.
The exchange said accounts tied to Shelbit users were investigated, frozen and reported to law enforcement once identified, and that an unnamed analytics firm had not rated the flows as high risk.
The Compliance Question Binance Now Faces
The findings land under an uncomfortable precedent. Binance pleaded guilty in November 2023 to US anti-money-laundering and sanctions violations, paying a $4.3 billion fine after officials said it had facilitated about $900 million in transactions between American and Iranian users.
That deal required an outside compliance monitor for three years. The case adds to Iran-linked sanctions stories our ongoing crypto news coverage, and regulators are weighing whether Binance’s program held up this time.
What VARA’s Next Move Signals for Exchanges
Dubai’s VARA ordered Shelbit to halt its unlicensed activity in a notice issued July 24, 2026, saying the exposure went beyond consumer protection to transactions capable of touching “the integrity of the UAE financial system.”
The US Treasury’s Office of Foreign Assets Control (OFAC) said it is aware of the allegations and taking them seriously. Whether OFAC acts against Shelbit next, as it did Nobitex, is the marker to watch.
What This Means for You
If you hold funds on Binance or any centralized exchange, this is a reminder that custodial risk includes regulatory risk, not just hacks. None of the funds involved belonged to retail users, but the case shows how fast an exchange can get pulled into a sanctions story if it did not start. Before keeping large balances on one platform, check its compliance record and weigh self-custody for funds you do not trade actively.
This article is for informational purposes only and does not constitute financial advice. Do your own research before making any investment decisions.
