How Iran's military ran a $4bn gambling network as part of a sanctions-dodging op: Report

Iran's military has allegedly operated a sophisticated $4 billion online gambling network as a means to circumvent Western sanctions, according to a Reuters investigation. The network reportedly used cryptocurrency transactions and an unlicensed Dubai-based exchange, Shelbit, to provide sanctioned Iranian entities access to global markets.

Shelbit is described as the financial hub, connecting Iran's central bank, over 2,000 gambling websites, suspected state-backed bitcoin mining operations, and major international crypto exchanges. Blockchain data indicates Shelbit processed at least $4 billion in cryptocurrency since May 2024, with significant amounts routed to Binance, the world's largest crypto exchange.

The gambling network is allegedly fronted by two Iranian influencers, Sasha Sobhani and Pooyan Mokhtari, who have high-level government connections. Both were convicted in an Iranian illegal gambling case in 2023, along with Shelbit's founder. Despite gambling being illegal in Iran, the network reportedly accesses the country's state-controlled online payment system.

Miad Maleki, who previously worked on U.S. sanctions policy for Iran, stated that the IRGC learned to control both the prohibition and the black market for illegal activities. Dubai's Virtual Assets Regulatory Authority is reportedly investigating the operation, which underscores Iran's persistent efforts to navigate international financial restrictions.

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When it comes to gambling, the IRGC learned the Islamic Republic's most lucrative lesson early: declare something illegal, then control both the prohibition and the black market.