A new report has alleged that Shelbit, an unlicensed cryptocurrency exchange based in Dubai with reported links to Iran, transferred approximately $676 million in digital assets to wallets associated with Binance, raising fresh questions about sanctions compliance and cross-border crypto transactions.
According to the report, roughly $540 million of those transfers occurred after Dubai regulators fined Shelbit in early 2025 for operating without the required license. The exchange is alleged to have been part of a broader network used for sanctions evasion and the movement of funds connected to online gambling activities.
Binance Rejects Direct Relationship
Binance responded by stating that Shelbit has never maintained an account on its platform.
The exchange clarified that while some transactions may have involved wallets belonging to Binance users, the reported transfers did not originate from an account owned or operated by Shelbit on Binance.
According to the company, any user accounts identified as potentially linked to suspicious activity were investigated, frozen where appropriate, and reported to relevant law enforcement authorities in accordance with its compliance procedures.
Compliance Remains Under the Spotlight
The allegations come as cryptocurrency exchanges continue to face heightened scrutiny over anti-money laundering (AML), sanctions compliance, and illicit finance controls.
Global regulators have increasingly focused on how digital asset platforms monitor cross-border transactions, identify high-risk counterparties, and prevent sanctioned entities from accessing international financial infrastructure.
The reported case underscores the ongoing challenge of distinguishing between transfers originating from independent external wallets and assets held directly by regulated exchanges.
Cross-Border Crypto Oversight Continues to Tighten
Authorities worldwide have been expanding oversight of cryptocurrency businesses, particularly those operating across multiple jurisdictions or serving users in sanctioned regions.
As regulators strengthen enforcement and compliance standards, exchanges are investing heavily in blockchain analytics, transaction monitoring, customer due diligence, and sanctions screening to identify suspicious activity and cooperate with law enforcement when necessary.
While the reported transfers have renewed debate around crypto compliance, Binance maintains that it acted promptly by investigating the relevant accounts and taking appropriate enforcement measures after suspicious activity was identified.
