Regulator VARA penalized Shelbit for unlicensed operations and potential AML violations tied to Iranian entities.
Dubai-based crypto exchange Shelbit processed at least $4 billion since May 2024 through a network linked to Iranian online gambling, the country’s central bank, and sanctioned entities. The transactions included wallets associated with Iran’s Islamic Revolutionary Guard Corps (IRGC), according to findings from an investigation.
Dubai’s Virtual Assets Regulatory Authority (VARA) fined Shelbit on July 24 for continuing unlicensed activities despite a January 2025 cease-and-desist order. The regulator cited potential anti-money laundering (AML) and terrorism-financing violations in its enforcement action.
No immediate market reaction was reported following the disclosure of the fine or the investigation’s findings.