US targets UAE-based crypto exchange over alleged Iran sanctions evasion scheme

The United States sanctioned Shelbit, an unlicensed, multi-state cryptocurrency exchange based in Dubai, on Friday, alleging it processed millions of dollars in crypto for Iran's Islamic Revolutionary Guard Corps (IRGC) and other state-linked groups. This action follows a July 31 Reuters investigation that identified Shelbit as central to a $4 billion Iranian sanctions evasion scheme, moving crypto for Iran's central bank and an illegal online gambling network. The US Treasury also sanctioned Shelbit founder Siavash Kayvanpour for supporting the IRGC and Nobitex, Iran's largest crypto exchange, which was previously sanctioned in June. Secretary of the Treasury Scott Bessent stated, "Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat." Shelbit, whose website was reactivated after the Reuters report, denied any knowing participation in illicit activities, stating it ceased operations in January 2026. Dubai's Virtual Assets Regulatory Authority (VARA) had also issued a notice on July 24, citing Shelbit for violations of money-laundering and terrorism financing laws.