A recent investigation by Reuters has uncovered a vast illegal online gambling network in Iran that has reportedly helped sanctioned entities transfer over $4 billion abroad.
Published on July 31, the report details how Iranian structures have circumvented sanctions through a network of illegal online casinos and the cryptocurrency exchange Shelbit in Dubai. The findings are based on blockchain data from two crypto-analytics firms and an independent researcher, as well as an analysis of connections between websites alongside cybersecurity company Infoblox and interviews with over 30 individuals.
According to John Wojcik, a former researcher at Infoblox, this is the largest illegal gambling network discovered in Iran and one of the largest in the world. The scheme has become one of the most significant Iranian operations to bypass sanctions since 2016. Here are some key details highlighted by iGN:
- Scale of the Scheme: $4 billion is the minimum amount of funds that have passed through the unlicensed cryptocurrency exchange Shelbit since May 2024.
- iGaming Sites: There are 2,000 iGaming sites in the network targeting Iranian audiences.
- Payment System Access: The network's sites had access to Iran's payment system controlled by the Central Bank, converting player funds into cryptocurrency before transferring them to Shelbit.
- IRGC Control: The Islamic Revolutionary Guard Corps (IRGC) took control of the largest iGaming sites in Iran about ten years ago, using them to move funds abroad.
Details on Shelbit:
- $130 million was processed for just one brand in the network since May 2024.
- $125 million was received from the Central Bank of Iran, a significant portion directly.
- $20 million came from alleged Iranian cryptocurrency miners through intermediary wallets.
- The exchange also interacted with the sanctioned Iranian platform Nobitex and wallets linked to the IRGC by Israel.
Involvement of Binance:
- $676 million was transferred from Shelbit addresses to Binance since May 2024.
- $540 million was transferred from Shelbit addresses after a fine from Dubai's VARA regulator in 2025.
- An independent researcher alerted Binance about Shelbit's connections to Iran in October 2025, yet transaction flows from Shelbit addresses continued.
- Binance stated that Shelbit never had an account, and a third-party analytics firm did not consider the flows high-risk; related accounts were frozen and handed over to law enforcement.
Influencer Involvement:
- At the time of the investigation's publication, over 60 Iranian influencers were promoting the network's sites, with about half having audiences exceeding 1 million, and three with over 10 million.
- Key figures include Iranian influencer Sasha Sobhani and singer Pouyan Mohtari, both convicted in absentia in Iran in 2023 for illegal gambling alongside the founder of Shelbit.
- Mohtari was detained in Dubai in March on charges of financing Iranian terrorist groups; after 35 days in custody, he was deported from the UAE with asset confiscation.
- Both deny involvement in money laundering and sanction evasion, as well as connections to Iranian state structures.
On July 24, VARA ordered Shelbit to immediately cease its unlicensed activities, citing violations of anti-money laundering and terrorism financing laws, and initiated an investigation into the exchange's role in sanction evasion. The U.S. Treasury's Office of Foreign Assets Control (OFAC) stated that it is aware of the allegations and takes them very seriously.
The information presented is based on Reuters' investigation and data gathered by its analysts.