The United States has sanctioned a cryptocurrency exchange accused of processing millions of dollars for Iran’s elite Islamic Revolutionary Guard Corps.
The US Treasury announced the designation on Friday against Shelbit, an unlicensed multi-state cryptocurrency exchange based in Dubai.
According to the US government, the exchange allegedly processed cryptocurrency for the IRGC and other groups linked to the Iranian state.
The action follows an investigation that identified Shelbit as a central hub in an alleged $4 billion Iranian sanctions-evasion network.
Shelbit Accused of Moving Crypto for Iranian Entities
The investigation found that Shelbit allegedly moved cryptocurrency on behalf of Iran’s central bank.
It also identified transactions involving one of the world’s largest illegal online gambling networks.
Furthermore, cryptocurrency was transferred to addresses linked by the Israeli government to Iran’s IRGC.
The US Treasury also sanctioned Siavash Kayvanpour, an expatriate Iranian who founded Shelbit.
Kayvanpour was accused of providing material support to the IRGC and Nobitex, Iran’s largest cryptocurrency exchange.
The United States had already sanctioned Nobitex on June 2 for allegedly helping the Iranian government circumvent Western sanctions.
“Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat,” Secretary of the Treasury Scott Bessent said in a statement.
Another Iranian Crypto Exchange Sanctioned
The US Treasury also announced sanctions against Aban Tether on Friday.
The Iran-based cryptocurrency exchange was accused of processing millions of dollars in transactions for sanctioned Iranian entities.
Those entities included Nobitex, which Washington previously targeted over alleged sanctions-evasion activities.
The latest actions therefore expand US efforts to target cryptocurrency networks allegedly connected with sanctioned Iranian organisations.
Shelbit Denies Allegations
Shelbit’s website had remained offline for several months, leaving customers unable to conduct transactions.
Despite the shutdown, however, the exchange allegedly continued processing funds during the US and Israeli war against Iran.
The website was reactivated one day after the investigation into its activities was published.
Shelbit rejected the allegations through a statement posted on its reactivated website on August 1.
“Shelbit LLC categorically rejects any suggestion that the company knowingly participated in money laundering, terrorist financing, illegal gambling activity, sanctions evasion, or activity on behalf of any sanctioned, military, or governmental organisation,” Shelbit said in a statement on its reactivated website on August 1.
The company also said it had stopped operations in January 2026.
Shelbit and Kayvanpour did not immediately respond to requests for comment.
Crypto Transfers Linked to Mining and Gambling
Tens of millions of dollars in cryptocurrency that passed through Shelbit allegedly originated from a suspected Iranian Bitcoin mining operation.
Bitcoin mining involves the creation of new digital coins through a computational process.
Additionally, many millions of dollars were allegedly connected to an illegal gambling network operated by two prominent Iranian social media influencers.
The US Treasury also criticised Iran over the alleged operation of the gambling network.
“The Iranian regime’s willingness to allow this gambling network to operate highlights its hypocrisy and corruption,” Treasury said in the statement published on its website.
The allegations add another layer to Washington’s broader efforts against cryptocurrency channels allegedly used to move funds around international sanctions.
Dubai Regulator Had Already Flagged Shelbit
The US action came shortly after Dubai’s Virtual Assets Regulatory Authority, known as VARA, issued a notice concerning Shelbit.
The regulator said the exchange had violated money-laundering and terrorism-financing laws.
VARA also raised concerns about transactions that could affect the integrity of the UAE’s financial system.
“The exposure identified by VARA extends beyond consumer protection to more egregious cross-border transactions with the propension to impact the integrity of the UAE financial system,” VARA said in a notice on its website on July 24, shortly after the investigation approached the authority for comment.
VARA did not respond to a request for comment.
US Tightens Pressure on Iranian Crypto Networks
The sanctions against Shelbit and Aban Tether highlight Washington’s continued focus on cryptocurrency channels allegedly linked to sanctioned Iranian entities.
In Shelbit’s case, US authorities allege that the exchange facilitated transactions involving the IRGC and other Iranian-linked networks.
At the same time, Shelbit has strongly denied knowingly participating in money laundering, terrorism financing, illegal gambling or sanctions evasion.
The company has also maintained that it ceased operations in January 2026.
Meanwhile, the US Treasury has signalled that it intends to pursue financial networks that allegedly help sanctioned Iranian organisations move funds.
The latest designations therefore place additional pressure on cryptocurrency exchanges suspected of facilitating transactions involving Iran.
However, the allegations against Shelbit remain disputed by the company, which has rejected any suggestion of knowingly supporting sanctioned organisations or illegal financial activity.
