Full Breakdown
U.S. Sanctions Target Dubai Crypto Exchange and Iran-Linked Digital Asset Network
8/9/2026, 3:55:56 AM
Core Event: Sanctions Announced on August 7, 2026
On August 7, 2026 the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated the Dubai-based cryptocurrency exchange Shelbit, the Iran-based platform Aban Tether, and their founder Siavash Kayvanpour for providing material support to Iran’s Islamic Revolutionary Guard Corps (IRGC) and other state-linked entities. The sanctions block all U.S. property and interests of the listed persons and entities and prohibit U.S. persons from dealing with any entity owned 50 % or more by the designated individuals.
Background & Context
A Reuters investigation published July 31, 2026 identified Shelbit as the hub of a $4 billion sanctions-evasion scheme that moved crypto for Iran’s central bank, an illegal online gambling network, and addresses linked by the Israeli government to the IRGC. The U.S. had previously sanctioned Iran’s largest crypto exchange Nobitex on June 2, 2026 for similar violations. Dubai’s Virtual Assets Regulatory Authority (VARA) issued a notice on July 24, 2026 stating that Shelbit violated money-laundering and terrorism-financing laws, warning of “more egregious cross-border transactions” that could affect the UAE financial system.
Data & Statistics
- IRGC-to-Shelbit transfers: over $1 million in digital assets.
- Shelbit-to-IRGC transfers: more than $2 million.
- Shelbit-to-Nobitex transfers: an additional $2 million.
- Gambling network flow: tens of millions of dollars passed through Shelbit from a high-profile Iranian online-gambling operation.
- Overall scheme size: linked to a $4 billion network of illicit crypto movements.
All figures are drawn from the Treasury’s sanction announcement.
Official Statements & Responses
The Treasury said the Iranian regime’s reliance on digital assets shows that the administration’s “Economic Fury” strategy is working.
Shelbit’s statement posted on August 1, 2026 rejected any suggestion that it knowingly participated in money laundering, terrorist financing, illegal gambling, sanctions evasion, or activity on behalf of sanctioned organizations.
Criticism & Opposition
VARA’s notice formally criticizes Shelbit’s compliance, noting that its cross-border crypto flows could undermine the UAE’s financial-system integrity.
Conflicting Reports & Gaps
Sources differ on the precise amounts transferred. Reuters cites specific figures of $1 million, $2 million, and $2 million for the three primary flows, while other outlets refer only to “millions of dollars.” The claim that “tens of millions of dollars” originated from the gambling network is not independently verified, leaving the exact scale of illicit crypto volume uncertain.
Verbatim Quotes
- “Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat,” — Treasury Secretary
- “Shelbit LLC categorically rejects any suggestion that the company knowingly participated in ?money laundering, terrorist financing, illegal gambling activity, sanctions evasion, or activity on behalf of any sanctioned, military, or governmental organization,” — Shelbit founder
These quotations capture the Treasury’s enforcement stance and Shelbit’s denial.
