Reuters Investigation Reveals Iran-Linked Cryptocurrency Network Behind $4 Billion in Transfers

A Reuters investigation has uncovered an Iran-linked financial network based on cryptocurrencies that is alleged to have facilitated the transfer of at least $4 billion through digital financial channels, in one of the largest blockchain-based sanctions-related money flow investigations to date, according to blockchain data reviewed by the news agency in collaboration with independent investigators.

The investigation highlights the growing role of cryptocurrencies in sanctioned environments. It says a company identified as Shellbit, which allegedly operated from an unlicensed office in Dubai, served as the hub of a financial network linking Persian-language gambling websites, cryptocurrency trading platforms, and Iranian entities under international sanctions, including the Central Bank of Iran and digital wallets that Israel says are linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).

The publication of the investigation comes as global markets continue to monitor the impact of Western sanctions and geopolitical tensions in the Middle East on capital flows and energy markets, alongside persistent concerns over maritime security in the Gulf and the Strait of Hormuz, an issue previously examined by Profile News in its coverage of security developments in the Strait of Hormuz and their implications for global trade and energy.

The investigation also coincides with growing international attention on regulating digital assets following recent U.S. initiatives aimed at supporting the cryptocurrency sector, including measures announced by President Donald Trump that were previously covered by Profile News in its report on new U.S. cryptocurrency policies.

Why does this investigation matter?
The report goes beyond exposing an alleged illegal gambling network. It examines how cryptocurrencies and cross-border digital infrastructure can operate in an environment subject to stringent financial sanctions, raising broader questions about the effectiveness of international sanctions, compliance mechanisms at digital asset trading platforms, and the future of oversight over cryptocurrency flows.

How did Reuters trace the network?

The investigation was based on a review conducted by Reuters in cooperation with an independent blockchain investigator and two cryptocurrency investigation firms, both of which requested anonymity because of the sensitivity of the data.

According to the investigation, tracing digital wallets and analyzing fund movements led to Shellbit, a cryptocurrency company registered in Dubai that, according to UAE authorities, was operating without the required license to conduct virtual asset activities.

Reuters reported that the company processed transactions worth at least $4 billion since May 2024, while tens of millions of dollars linked to Persian-language gambling networks were traced to digital wallets managed by the company.

The investigation says the significance of these findings lies not only in the scale of the transactions but also in the nature of the entities with which the company dealt, including sanctioned Iranian entities and global cryptocurrency trading platforms, making it a central node in a cross-border financial network.

Who is Shellbit?

According to Reuters, the company’s registered office is located in a modest building in Dubai’s Deira district above a hotel, while the company no longer had a functioning website when a Reuters reporter visited the address.

Commercial records reviewed by Reuters indicate that the company is run by Iranian expatriate Siyavash Kianpour, who was convicted in Iran in 2023 in a case involving alleged collusion in operating illegal gambling activities.

The investigation also concluded that Shellbit was not a cryptocurrency exchange available to the general public but instead functioned as an intermediary connecting digital wallets and specialized financial networks. UAE authorities subsequently issued an official notice ordering the company to cease all unlicensed virtual asset activities.

The Dubai Virtual Assets Regulatory Authority (VARA) confirmed that it took action against the company in 2025, saying the risks it identified extended beyond consumer protection to include cross-border transactions that could affect the integrity of the UAE’s financial system.

A Gambling Network of More Than 2,000 Websites at the Center of the Investigation

The Reuters investigation concluded that one of Shellbit’s most significant clients was an extensive Persian-language gambling and betting network comprising more than 2,000 websites, described by researchers interviewed by the news agency as the largest illegal gambling network linked to Iran uncovered to date.

According to the investigation, the network was promoted by two prominent Iranian social media personalities, Sasha Sobhani and Pouyan Mokhtari, both of whom have millions of followers and regularly showcase luxury lifestyles featuring sports cars, private jets, and yachts.

The investigation reported that the two men, along with Shellbit founder Siyavash Kianpour, were convicted in Iran in 2023 in a case involving alleged collusion in illegal gambling activities. Reuters reported that all three denied any involvement in money laundering, sanctions evasion, or acting on behalf of Iranian state institutions.

How Did the Investigation Link Gambling to Sanctions?

The Reuters investigation argues that the significance of the network extends beyond gambling activities, suggesting it functioned as a financial infrastructure allowing funds to move between Iran’s economy and global cryptocurrency markets.

According to the blockchain analysis cited by Reuters, Shellbit conducted transactions with sanctioned Iranian entities, including the Central Bank of Iran, as well as digital wallets that the Israeli government says are linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The company also reportedly conducted transactions with the Iranian cryptocurrency exchange Nobitex, which was sanctioned by the United States earlier this year.

Reuters also reported that part of the cryptocurrency flowing into Shellbit originated from Bitcoin mining operations inside Iran, an activity that Iranian authorities have permitted under a government licensing system since 2019.

According to the investigation, the combination of domestic cryptocurrency mining, digital assets, and overseas trading platforms may provide Iran with alternative channels for accessing liquidity outside the traditional financial system subject to Western sanctions.

What Did the Investigation Say About the IRGC?

The investigation was based on interviews with more than 30 sources, including former Iranian officials, individuals who said they had ties to Iran’s Islamic Revolutionary Guard Corps, and specialists in cybersecurity and cryptocurrency investigations.

Reuters quoted independent blockchain researcher Rich Sanders as saying that the data he reviewed indicated that Shellbit was part of an operation linked to the IRGC.

Reuters also cited former officials as saying that the IRGC had expanded its influence over Iran’s online gambling sector in recent years, benefiting from its control over the country’s domestic financial infrastructure and electronic payment system.

At the same time, Reuters said it was unable to establish whether the IRGC directly controlled Shellbit or the gambling network, nor could it determine which Iranian entity ultimately received a substantial portion of the funds that moved through the network.

What Did UAE Authorities Say?

The investigation reported that the Dubai Virtual Assets Regulatory Authority (VARA) had been examining Shellbit’s alleged role while also reviewing the activities of its founder, Siyavash Kianpour, and the broader network associated with him.

VARA told Reuters that, together with Dubai’s Department of Economy and Tourism, it had taken action against the company in 2025 because it was conducting virtual asset activities without the required license.

The authority added that a notice issued on July 24 ordered the company to immediately cease all unlicensed activities, stating that the identified risks extended beyond consumer protection to include cross-border financial transactions that could affect the integrity of the UAE’s financial system.

Meanwhile, the UAE Ministry of Foreign Affairs said the country applies the highest international standards in combating money laundering and terrorist financing and works closely with international partners to counter illicit financial flows.

Binance’s Response

The investigation also examined Shellbit’s dealings with Binance, the world’s largest cryptocurrency exchange.

According to data reviewed by Reuters, at least $676 million flowed from wallets linked to Shellbit to Binance beginning in May 2024.

Binance told Reuters that Shellbit did not maintain a direct account on its platform. The company said its compliance systems froze related accounts and reported them to law enforcement authorities after they were identified.

Binance also said transactions linked to Shellbit had not been classified as high-risk by an independent blockchain analytics company, although it did not identify that firm.

U.S. Treasury: We Are Reviewing the Allegations

Reuters quoted a spokesperson for the U.S. Department of the Treasury as saying that the Office of Foreign Assets Control (OFAC) is aware of the allegations outlined in the investigation and is taking them seriously.

The spokesperson added that the department continues to target digital assets linked to the Iranian government as part of efforts to curb sanctions evasion.

What Does This Investigation Mean for Sanctions on Iran?

The Reuters investigation highlights one of the most significant challenges facing modern financial sanctions: the ability of digital asset networks to create cross-border financial channels that are more difficult to trace than the traditional banking system.

According to the investigation, the significance of the Shellbit network lies not only in the volume of funds that passed through it, but also in the nature of the entities with which it allegedly interacted, including sanctioned organizations, global cryptocurrency exchanges, and gambling networks that used digital assets as a means of transferring funds.

This comes at a time when cryptocurrencies are playing an increasingly important role in the global economy, alongside their growing use in cross-border payments and investment. Profile News previously examined these developments in its report on Bitcoin and cryptocurrency market developments.

How Have Cryptocurrencies Become a Tool for Sanctions Evasion?

The investigation indicates that Iran has increasingly relied on cryptocurrency mining in recent years as a means of generating digital assets that can be traded outside the traditional financial system.

At the same time, the United States has intensified regulatory scrutiny of the sector, while governments worldwide continue developing regulatory frameworks for digital assets to combat money laundering and other illicit financial activities.

These developments have gained additional significance as cryptocurrencies assume a larger role in global financial markets, amid continuing debate in the United States over regulation of the sector. Profile News has also covered these developments in its report on U.S. policies toward digital assets.

The Investigation Illustrates the Intersection of the Digital Economy and Geopolitics

The Reuters investigation extends beyond tracing financial transactions or gambling networks, offering a broader picture of how cryptocurrencies have become part of today’s geopolitical and global economic landscape.

According to the report, sanctions, gambling networks, cryptocurrency exchanges, Bitcoin mining, and sanctioned entities have become interconnected within an increasingly complex digital financial environment where technology, politics, security, and economics overlap.

This comes as global markets continue to monitor the impact of sanctions and regional tensions on international energy and trade flows, a broader context that Profile News has previously explored in its analysis of U.S.-Iran negotiations and the impact of geopolitical developments on global markets.

Conclusion

The Reuters investigation describes a complex financial network that the news agency says relied on cryptocurrencies to connect Persian-language gambling websites, an unlicensed company operating from Dubai, and several Iranian entities subject to international sanctions.

The investigation is based on an independent analysis of blockchain data, official documents, interviews with more than 30 sources, and a review of digital transaction records dating back to May 2024.

At the same time, several individuals and companies named in the investigation denied the allegations against them, while UAE authorities confirmed they had taken regulatory action against Shellbit. The U.S. Treasury Department also said it is reviewing the allegations contained in the report.

Although the Reuters investigation provides one of the most detailed accounts to date of the alleged network, it also notes that many questions remain unanswered, including who ultimately controlled the full flow of funds and the final destination of a substantial portion of the cryptocurrency transfers.

Read Also

• Escalation in the Strait of Hormuz and Its Impact on Global Trade and Energy
• Trump Backs Cryptocurrencies: What Do the New Measures Mean?
• European Stocks Await the Fed and Geopolitical Developments
• How Geopolitical Crises Affect Global Markets

Sources

• Reuters Special Report – Gambling network allegedly helps Iran evade sanctions through cryptocurrency transfers
• U.S. Department of Energy
• U.S. Treasury – Office of Foreign Assets Control (OFAC)