DUBAI,— The U.S. government imposed sanctions Friday on an unlicensed cryptocurrency exchange operating across multiple countries, accusing it of handling millions of dollars in digital currency for Iran’s Islamic Revolutionary Guard Corps and other groups tied to Tehran.

The action targets Shelbit, an exchange based in Dubai, and comes after a Reuters report published July 31 described the company as central to a $4 billion scheme to help Iran dodge international sanctions.

Reporters found that Shelbit handled cryptocurrency transactions for Iran’s central bank and for one of the largest illegal online betting operations in the world, and sent funds to digital wallets that Israeli officials have connected to the Revolutionary Guard.

The Treasury Department also placed sanctions on Siavash Kayvanpour, an Iranian who lives abroad and started Shelbit along with several related businesses.

Officials said he gave material support to both the Revolutionary Guard and Nobitex, which is Iran’s largest crypto trading platform.

Nobitex was sanctioned by Washington on June 2, also following reporting by Reuters, for helping Iran’s government get around Western financial restrictions.

Treasury Secretary Scott Bessent said his department would track down and break apart illegal financial systems that help sustain the Iranian government.

Shelbit’s website had been offline for several months, leaving customers unable to complete transactions, but the company kept moving money even while the United States and Israel were at war with Iran.

The site came back online the day after Reuters published its findings.

In a statement posted August 1 on its newly restored website, Shelbit denied any wrongdoing, saying it never knowingly took part in money laundering, financing terrorism, illegal gambling, sanctions violations, or work for any sanctioned military or government body.

The company added that it had shut down operations in January 2026. Neither Shelbit nor Kayvanpour responded to requests for comment.

According to Reuters, tens of millions of dollars that flowed through Shelbit originated from a suspected Iranian bitcoin mining operation, which generates new digital currency.

Millions more were tied to an illegal betting network run by two well-known Iranian social media personalities.

Treasury said in its statement that Iran’s government allowing the gambling network to function shows its hypocrisy and corruption.

The sanctions were announced shortly after Dubai’s Virtual Assets Regulatory Authority, known as VARA, warned that Shelbit had broken rules against money laundering and terrorism financing.

In a July 24 notice, VARA said the risks it found went beyond harming consumers and could affect the broader stability of the United Arab Emirates’ financial system.

(With files from Reuters, Treasury.gov )

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