US Sanctions Shelbit, Aban Tether in Iran Crypto Crackdown

The United States expanded its sanctions on Iran's shadow banking infrastructure by targeting two cryptocurrency exchanges accused of moving money for the Islamic Revolutionary Guard Corps. The Treasury's Office of Foreign Assets Control designated Dubai-based Shelbit and Iran-based Aban Tether, adding digital asset platforms to a broader effort that already covers exchange houses, shell companies and shipping networks.

Shelbit drew scrutiny after a Reuters investigation traced at least $4 billion through the exchange and connected its activity to Iranian financial networks, including the Central Bank of Iran and addresses linked by Israeli authorities to the IRGC. The exchange was founded by Iranian expatriate Siavash Kayvanpour and operated without a Dubai virtual asset license. U.S. authorities later sanctioned both Shelbit and Kayvanpour, alleging the network provided material support to the IRGC and to Nobitex, Iran's largest crypto exchange. Nobitex had already been sanctioned by the Treasury in June.

Reuters reported that Shelbit-linked wallets sent at least $676 million to Binance, while at least $125 million in activity was tied to Iran's central bank. Binance said Shelbit itself did not maintain an account on the platform and that accounts linked to the activity were reviewed, frozen and reported where appropriate.

The latest action builds on a more aggressive regulatory position established earlier this year. OFAC states that Iranian digital asset exchanges qualify as Iranian financial institutions under U.S. sanctions rules. Property involving those exchanges that comes within U.S. jurisdiction must be blocked, even when a platform is not individually listed on the Specially Designated Nationals list. In June, Treasury went further by specifically designating Nobitex, Wallex, Bitpin and Ramzinex. Treasury said Nobitex alone processed more than 50% of all Iranian digital asset inflows in 2025 and had facilitated transactions linked to the IRGC and sanctioned ransomware actors.

Foreign companies are also exposed. OFAC warns that non-U.S. financial institutions and businesses can face sanctions risk for significant dealings with designated Iranian exchanges. That expands the practical reach of the crackdown far beyond U.S. platforms.

The State Department is attacking the network from another direction. Its Rewards for Justice program is offering up to $15 million for information that leads to disruption of the IRGC's financial mechanisms, including front companies, illicit oil-related schemes and entities helping the group evade sanctions.

Shelbit has denied knowingly participating in money laundering, terrorist financing, sanctions evasion or activity on behalf of sanctioned Iranian entities. It also said it stopped operating in January 2026. Reuters reported, however, that transactions continued and that the exchange's website returned shortly after its investigation was published. Reuters also said it could not independently establish that the IRGC directly controlled Shelbit or the broader gambling network associated with it.

The immediate effect is a higher compliance burden for global crypto exchanges, stablecoin issuers and OTC desks. Platforms now have to monitor not only individually sanctioned addresses but also counterparties linked to Iranian exchanges, shell companies and cross-chain flows that may trace back to designated entities.

The next development to watch is whether OFAC identifies additional overseas exchanges, OTC brokers or wallet clusters linked to Shelbit, Nobitex and Aban Tether. Further designations would show how aggressively Washington intends to extend its sanctions architecture from named Iranian platforms into the broader international crypto liquidity network.