An investigation into Shelbit has uncovered a cryptocurrency gambling network operating across multiple platforms, raising questions about regulatory oversight as crypto-based gambling continues to expand.
A Reuters investigation has uncovered a cryptocurrency gambling network centered on Dubai-based crypto exchange Shelbit, raising new questions about regulatory oversight as crypto gambling continues to expand globally.
According to Reuters, blockchain analysis indicates that at least $4 billion in cryptocurrency flowed through Shelbit since May 2024. Investigators also linked the platform to more than 2,000 Iranian gambling websites, making it one of the largest crypto gambling networks publicly identified to date.
Authorities are reportedly examining a network tied to Shelbit that spans multiple gambling platforms. The investigation is focused on how the network operates, its financial flows, and whether it complies with existing gambling and financial regulations.
The findings highlight the growing challenge regulators face as crypto-based gambling expands alongside broader adoption of digital assets. While licensed operators in regulated markets are subject to strict oversight, offshore crypto platforms often operate across multiple jurisdictions, complicating enforcement efforts.
Reuters reported that blockchain forensic analysis traced at least $4 billion in cryptocurrency transactions through Shelbit. Investigators also found that wallets linked to the exchange transferred more than $676 million to Binance.
Binance stated that it investigated accounts connected to the activity, froze those that violated its policies, and cooperated with law enforcement where appropriate.
The investigation has also drawn attention to Shelbit’s regulatory status. Reuters reported that Dubai’s Virtual Assets Regulatory Authority (VARA) fined the exchange in 2025 for operating without a required license, while UAE authorities are reportedly examining potential anti-money laundering and sanctions-related violations.
The case reflects broader regulatory gaps surrounding crypto gambling. Many crypto-native operators serve users across borders while remaining outside the scope of traditional gambling regulators, leaving authorities with limited enforcement options.
The Shelbit investigation comes as regulators worldwide continue debating how to oversee cryptocurrency gambling platforms. Cross-border operations, cryptocurrency payments, and differing national regulations have made enforcement significantly more complex than in traditional online gambling.
While several aspects of the investigation remain ongoing, the Reuters findings have intensified scrutiny of offshore crypto gambling networks and are likely to fuel further discussions around licensing, consumer protection, and anti-money laundering compliance as authorities continue their inquiries.
Vladimir is a senior iGaming writer and editor, adept at breaking down the key details of crypto casinos and sportsbooks so players don’t have to, delivering honest, player-focused information that actually matters.
