USDU.S. Targets Iran-Linked Crypto Networks Moving Billions
Sanctions cover Dubai money flows and Strait of Hormuz shipping payments
TL;DR
- A Dubai-based network allegedly moved about $4 billion through the unlicensed Shelbit crypto exchange.
- U.S. sanctions targeted Iranian maritime entities accused of collecting Bitcoin payments from ships crossing the Strait of Hormuz.
- Investigators linked the networks to sanctioned Iranian institutions and IRGC-associated wallets, though Shelbit’s direct IRGC control was not established.
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The United States has intensified pressure on Iran-linked cryptocurrency operations after investigators traced about $4 billion through a Dubai-based exchange and the Treasury Department sanctioned a separate maritime payment program accused of collecting Bitcoin and other digital assets from ships using the Strait of Hormuz.
Details published on July 31, 2026, outlined two alleged sanctions-evasion models. One centered on Shelbit, an unlicensed cryptocurrency exchange operated by Iranian expatriate Siavash Kayvanpour. The other involved maritime “insurance” policies that U.S. officials said generated revenue for the Islamic Revolutionary Guard Corps by requiring commercial vessels to pay for protection against risks associated with passage through the Strait of Hormuz.
Shelbit allegedly operated as a central crypto hub connecting illegal gambling businesses, the Central Bank of Iran, sanctioned Iranian entities and international digital-asset markets. Investigators characterized the operation as one of the largest Iranian sanctions-evasion networks uncovered since 2016, when the United States dismantled an approximately $20 billion IRGC-linked gold-for-oil operation based in Turkey.
A separate U.S. enforcement action in May 2026 resulted in the seizure of $1 billion in cryptocurrency from Iran.
Dubai exchange linked to gambling and sanctioned entities
A large illegal gambling network headquartered in Dubai allegedly became one of Shelbit’s principal customers and transferred millions of dollars in cryptocurrency through the exchange. The network comprised more than 2,000 platforms and ranked among the world’s largest known illegal online gambling operations.
John Wojcik, a former researcher at Infoblox and senior analyst at TRM Labs who spent seven years investigating illegal gambling for the United Nations Office on Drugs and Crime, said: “This is by far the biggest Iranian illegal gambling network ever discovered and one of the biggest in the world.”
Shelbit allegedly provided the gambling network, the Central Bank of Iran and other sanctioned Iranian entities with access to international crypto liquidity and infrastructure that would otherwise be difficult to reach through conventional banking channels.
The Central Bank of Iran has been sanctioned under U.S. counterterrorism authorities since 2019 over its alleged support for the IRGC, the IRGC’s Quds Force and Hezbollah.
Blockchain investigators traced direct interactions between Shelbit and the Central Bank of Iran, wallets linked to the IRGC by the Israeli government and Nobitex, an Iranian cryptocurrency exchange sanctioned by the United States earlier in 2026 following an investigation into its government connections.
Some cryptocurrency entering Shelbit allegedly came from an Iranian Bitcoin-mining operation that generated newly issued digital coins, according to two investigative firms. Those assets entered the network without first passing through a bank, fiat on-ramp or foreign exchange provider.
Shelbit allegedly transferred hundreds of millions of dollars to major global cryptocurrency companies, including Binance.
Binance said Shelbit had never held an account directly on its platform and that transactions associated with the exchange were not initially categorized as high risk. Binance said it later reviewed users connected to Shelbit, froze relevant accounts and reported them to law-enforcement authorities.
Rich Sanders, an independent blockchain researcher and investigator focused on Iran, said: “It’s an IRGC operation, and that’s plain as day.”
Investigators did not establish that the IRGC directly controlled Shelbit or the Dubai gambling network. The financial and wallet-level connections therefore did not resolve whether the organization exercised direct operational command over either entity.
The IRGC was founded in 1979 and is accountable directly to Iran’s supreme leader, identified in the information as Mojtaba Hosseini Khamenei.
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Treasury sanctions alleged maritime payment scheme
U.S. sanctions imposed on Wednesday, July 29, 2026, targeted the Persian Gulf Marine Insurance Company and the HormuzSafe Marine Services Authority, also known as Hormuz Safe.
The Treasury Department’s Office of Foreign Assets Control accused the two Iranian entities of operating a maritime payment mechanism that generated revenue for the IRGC by pressuring commercial vessels crossing the Strait of Hormuz to purchase insurance payable in Bitcoin and other digital assets.
U.S. officials characterized the arrangement as extortion rather than conventional maritime insurance because the policies covered vessel seizures and other dangers largely created or controlled by Iran.
The Treasury Department said the risks “are overwhelmingly created by Iran itself.”
Commercial vessels allegedly had to purchase the policies to obtain safer passage through the Strait of Hormuz. The route is a strategically important corridor for international energy shipments.
Iran’s Ministry of Economy developed Hormuz Safe, according to the Treasury Department. The platform accepted Bitcoin and other digital assets as part of the Iranian government’s efforts to bypass Western sanctions and avoid reliance on correspondent banks, dollar-clearing systems and other conventional financial intermediaries.
The Persian Gulf Strait Authority approved the policies. The United States identified the authority as IRGC-backed and sanctioned it in May 2026.
The Treasury Department designated the Persian Gulf Marine Insurance Company and Hormuz Safe under an executive order covering Iran’s petroleum and petrochemical sectors.
The restrictions prohibit U.S. individuals and companies from transacting with the designated entities. Foreign businesses may also face secondary-sanctions exposure for dealing with them, including when payments are made in Bitcoin or another digital asset.
“Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons,” the Treasury Department said.
The Treasury Department added: “Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions.”
Treasury Secretary Scott Bessent said: “With its economy in freefall and inflation in the triple digits, the regime is desperate for cash.”
“The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression, and repression,” Bessent said.
Bitcoin insurance proposal preceded sanctions
The maritime program had surfaced on May 18, 2026, when state-linked accounts described an Iranian Economy Ministry proposal to manage shipping through the Strait of Hormuz using marine insurance policies settled in Bitcoin.
Hormuz Safe’s website displayed only a landing page at that time. It could not be independently verified whether the platform was operational or whether cargo owners had purchased policies.
State-linked accounts claimed the insurance model could generate more than $10 billion. They did not provide the methodology or assumptions supporting that projection, leaving the amount as an attributed claim rather than a verified revenue estimate.
Crypto scam messages offering safe passage through the Strait of Hormuz in exchange for digital-currency payments began circulating in April 2026. Those solicitations culminated in an attack on a tanker northeast of Oman, although the information did not establish who carried out the attack or conclusively connect it to the sanctioned companies.
Shipping traffic through the Strait declined during several weeks of U.S. strikes on Iran. Military tensions and reduced vessel traffic kept oil prices elevated because of the route’s role in global energy transportation.
The maritime program combined digital-asset settlement with insurance documentation, IRGC-backed authorization and alleged coercion involving physical shipping traffic. The Shelbit network used a different structure, aggregating funds from gambling platforms, sanctioned institutions, mining operations and other sources before transferring assets into larger international markets.
Both operations allegedly connected cryptocurrency activity to the IRGC. Shelbit interacted with IRGC-linked wallets and sanctioned entities, while the Treasury Department said proceeds from the maritime insurance arrangement were intended to finance the organization.
Direct IRGC ownership or operational control was not established for Shelbit or the gambling network. The Treasury Department, however, directly identified the Persian Gulf Strait Authority as IRGC-backed and alleged that the maritime arrangement directed revenue to the IRGC.
This article has been refined and enhanced by ChatGPT.
