Millions of dollars in cryptocurrency flow through a Dubai office operated by one of the world’s largest illegal gambling networks, in what appears to be an operation aimed at circumventing sanctions on Iran worth an estimated $4 billion.
An independent analyst and data reviewed by Reuters from two cryptocurrency investigation firms found that the office is located above a modest hotel in a less affluent Dubai neighborhood. It is the registered address of Shellbit, an unlicensed cryptocurrency company run by an Iranian expatriate.
Among Shellbit’s prominent clients is a Persian-language gambling and betting network comprising more than 2,000 websites. The network is linked to two prominent Iranian influencers who have ties to senior figures in the country’s ruling circles. One operates from a luxury villa in Madrid, while the other until recently stayed at a luxury hotel in Hong Kong.
The two men and the Iranian operator of Shellbit were convicted in 2023 of involvement in illegal gambling activities in Iran.
Iran bans gambling and punishes it with flogging and imprisonment. Yet the gambling network identified by Reuters has access to Iran’s electronic payments system, which is closely regulated by the Central Bank.
Shellbit serves as a hub in an Iranian money-transfer network through which the gambling operation, the central bank and other sanctioned Iranian entities can access global cryptocurrency markets.
The two cryptocurrency investigation firms, together with Rich Sanders, an independent blockchain investigator and researcher specializing in Iran, analyzed transaction data flowing through Shellbit, including at least $4 billion in transactions since May 2024.
The two firms asked not to be identified because of the sensitivity of the data reviewed by Reuters. Blockchain records show that tens of millions of dollars in digital assets linked to the gambling network can be traced to Shellbit.
Shellbit has transferred hundreds of millions of dollars in cryptocurrency to some of the industry’s largest players, including Binance, the world’s largest cryptocurrency exchange.
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