Binance Faces Scrutiny Over Millions from Iran Linked Exchange

Over 676 million dollars in cryptocurrency moved from an unlicensed Dubai exchange named Shelbit onto Binance since May 2024. Investigators claim Shelbit serves as a key hub for an Iranian sanctions evasion network. About 540 million dollars of this volume occurred after Dubai regulators took action against the exchange in early 2025.

Blockchain researchers report they alerted Binance about the suspicious activity in October 2025. Binance maintains that Shelbit never held an account on its platform and noted that its compliance protocols investigated and froze relevant accounts when flagged. The exchange also mentioned that an outside analytics firm did not identify the flows as high risk.

This situation draws attention because of the history between Binance and US authorities. Binance pleaded guilty in 2023 to violating money laundering and sanctions laws. The firm is currently under an independent compliance monitoring program as part of that settlement. Investigators found that Shelbit moved at least 4 billion dollars total, including funds linked to Iranian state entities.

Dubai regulators recently issued a formal notice citing concerns that Shelbit threatens the integrity of the local financial system. While the origin of the funds and the identity of those controlling Shelbit remain subjects of investigation, US Treasury officials are monitoring the claims. Traders should watch for potential impacts on compliance standards and future regulatory scrutiny regarding cross border crypto flows.