US Sanctions Dubai Crypto Exchange for Alleged Ties to Iran's IRGC

The United States has sanctioned a Dubai-based cryptocurrency exchange, Shelbit, for allegedly processing millions of dollars in digital assets for Iran’s elite Islamic Revolutionary Guard Corps (IRGC) and other state-linked entities. The action, announced Friday, also targets the exchange’s founder, Siavash Kayvanpour, and a network of associated companies.

Details of the Sanctions

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) designated the unlicensed exchange for providing material support to the IRGC and to Nobitex, Iran’s largest crypto exchange, which the U.S. sanctioned in June. The Treasury stated the move is part of a broader effort to disrupt illicit financial channels supporting the Iranian government.

“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. The sanctions effectively block the designated entities from the U.S. financial system and prohibit U.S. persons from transacting with them.

Investigation Uncovered Widespread Evasion

The government's action follows a July 31 Reuters investigation that identified Shelbit as a central player in an alleged $4 billion Iranian sanctions evasion scheme. The report detailed how the exchange allegedly moved cryptocurrency on behalf of several entities, including:

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• Iran’s central bank
• A large-scale illegal online gambling network
• Crypto addresses that the Israeli government has linked to the IRGC

Reuters also reported that tens of millions of dollars funneled through Shelbit came from a suspected Iranian bitcoin mining operation.

Company Denial and Regulatory Action

Shelbit has denied the allegations. In a statement posted on its website on August 1, the day after the Reuters report was published, the company said it “categorically rejects any suggestion that the company knowingly participated in money laundering, terrorist financing, illegal gambling activity, sanctions evasion.” The firm also claimed it had ceased operations in January 2026.

Prior to the U.S. sanctions, Dubai’s Virtual Assets Regulatory Authority (VARA) issued a notice on July 24, stating Shelbit was in violation of local anti-money laundering and terrorism financing laws. According to the source, VARA's notice was published shortly after Reuters had approached the authority for comment.