US sanctions Dubai-based crypto exchange over alleged IRGC funding
The US Treasury has sanctioned a Dubai-based cryptocurrency exchange, Shelbit, and its founder for allegedly laundering millions of dollars for Iran's Islamic Revolutionary Guard Corps and the Iranian central bank. This action is part of a broader effort to dismantle financial networks used by Iran to evade international sanctions.
Why it matters
The use of decentralized finance and crypto exchanges to bypass state-level sanctions represents a major challenge for global financial regulators and foreign policy enforcement.
The United States on Friday imposed sanctions on Dubai-based cryptocurrency exchange Shelbit, its founder Siavash Kayvanpour and a network of associated companies. It alleged that the company processed millions of dollars in digital assets for Iran's Islamic Revolutionary Guard Corps, Iran's central bank and other entities linked to the Iranian state.The US treasury department announced the action as part of a wider crackdown on sanctions evasion through cryptocurrency networks. It also sanctioned Aban Tether, an Iran-based crypto exchange, accusing it of processing millions of dollars in transactions for sanctioned Iranian entities, including Nobitex, Iran's largest cryptocurrency exchange.Announcing the measures, US treasury secretary Scott Bessent said, "Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat."A Reuters investigation published on July 31 identified Shelbit as the hub of a $4 billion Iranian sanctions evasion network.
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