The US authorities have recently imposed sanctions on an Iranian firm, Shelbit, for allegedly facilitating over $6 billion in illegal blockchain transactions over the past two years. According to blockchain analytics company TRM Labs, Shelbit was operating as a crypto exchange in name only, with little to no customer funds held in its wallets.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) also sanctioned Shelbit’s founder, Siavash Kayvanpour, along with a network of affiliated entities in the UAE, Poland, and Georgia, as well as the Iran-based exchange, Aban Tether. Shelbit was accused of transferring funds to wallets controlled by the Islamic Revolutionary Guard Corps (IRGC), totaling $6.3 billion between May 2024 and March 2026.
In response to the sanctions, Secretary of the Treasury, Scott Bessent, stated, “The Iranian regime’s reliance on digital assets and shadow banking networks is further evidence that Economic Fury is working. We will continue to increase the economic pressure. Whether in dollars, rials, or crypto, Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat.”
TRM Labs revealed that Shelbit’s wallet activity showed a pattern of funds entering and leaving the platform almost immediately, suggesting it operated more as a settlement conduit than a traditional exchange. The majority of transactions, approximately $5.6 billion, were conducted on the TRON blockchain using dollar-pegged stablecoins, with an average transfer amount of $54,500.
Furthermore, Shelbit’s main clientele were identified as a Farsi-language online gambling network consisting of over 2000 websites. Social media figures Sasha Sobhani and Pooyan Mokhtari were publicly associated with these websites, promoting them to their millions of followers. TRM traced around $72.6 million in exposure between Shelbit and various online gambling platforms, with the largest single relationship accounting for approximately $46.4 million.
The report also highlighted Shelbit’s connections to sanctioned Russian payment networks and services, indicating a broader network involved in illicit financial activities. Despite the allegations, both Sobhani and Mokhtari denied any involvement in money laundering, sanctions evasion, or terrorism financing, claiming their roles were limited to paid advertising.
Overall, the sanctions imposed on Shelbit and its affiliates underscore the US government’s commitment to dismantling illicit financial networks that support rogue regimes. The case serves as a warning to those engaged in illegal blockchain activities and reinforces the need for regulatory oversight in the cryptocurrency industry.