U.S. Sanctions Crack Down on Cryptocurrency Exchange Shelbit

The United States sanctioned Shelbit, a Dubai-based cryptocurrency exchange, for processing millions in crypto for Iran’s Revolutionary Guard Corps. The action follows a Reuters investigation uncovering a $4 billion Iranian sanction evasion scheme. The U.S. also sanctioned its founder, Siavash Kayvanpour, linked to illegal financial networks.

The United States has implemented sanctions against the cryptocurrency exchange Shelbit, accusing it of facilitating millions in transactions for Iran’s elite Islamic Revolutionary Guard Corps and other state-linked organizations.

A Reuters investigation identified the Dubai-based Shelbit as a central figure in a massive $4 billion Iranian sanctions evasion operation. This included moving cryptocurrency for Iran’s central bank and prominent illegal gambling networks while being linked by Israel to the IRGC. Furthermore, the U.S. Treasury sanctioned Shelbit's founder, Siavash Kayvanpour, and associated companies for materially supporting the IRGC and Nobitex, Iran’s largest cryptocurrency exchange.

Despite claims of discontinued operations and denial of wrongdoing, Shelbit was penalized alongside Iran-based Aban Tether for processing transactions for sanctioned entities. The crackdown coincides with Dubai’s regulatory alert on Shelbit for violations of money laundering and terrorism financing laws.