US sanctions Dubai crypto exchange over Iran-linked fund flows
Washington sanctioned Shelbit after saying the Dubai exchange handled at least $4 billion tied to an Iranian sanctions-evasion network and IRGC-linked wallets.
The U.S. sanctioned Shelbit, a Dubai-based cryptocurrency exchange, on Friday for helping move funds tied to Iran’s Islamic Revolutionary Guard Corps. The Office of Foreign Assets Control said the action targeted digital asset exchanges that the Iranian regime relies on to launder billions of dollars, preserve covert access to the financial system, and support sanctioned entities.
Shelbit was described as an unlicensed exchange, and the case centered on more than a single compliance failure. Reuters reported that Shelbit processed at least $4 billion connected to an Iranian sanctions-evasion network. The exchange was also linked to a Farsi-language gambling network spanning more than 2,000 websites, and it interacted with Iran’s central bank as well as addresses the Israeli government linked to the IRGC.
Treasury’s framing made the enforcement purpose explicit. By moving against an exchange rather than only individual wallets or front companies, Washington is treating crypto infrastructure itself as a choke point in illicit finance. The target list now reaches across exchanges, wallet providers, payment processors and other intermediaries that can move money quickly through opaque cross-border routes with uneven oversight.
The case fits a broader campaign against Iran-linked digital finance. Treasury previously froze $130 million in crypto tied to Iran, and in September 2025 it sanctioned an Iranian network that laundered more than $100 million in crypto through front companies in the United Arab Emirates. Reuters also reported that UAE authorities have arrested dozens of money changers linked to the IRGC, a sign that pressure on Gulf-based financial channels is already part of the enforcement picture.
For Dubai and the wider UAE, the action raises fresh scrutiny over how effectively rapidly expanding digital-asset hubs can police illicit flows that move across jurisdictions in seconds. For Treasury, the test is practical: whether sanctions can still deter networks that use loosely regulated exchanges, gambling operations and intermediary structures to route money around the formal banking system.
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