Binance Under Fire After $676 Million From Shelbit Network
Reuters reports that since May 2024, hundreds of millions have moved through Shelbit to Binance, even after Dubai had already taken action against the unlicensed exchange. The case also ties back to Binance’s earlier settlement over sanctions and anti-money laundering rules.
Key Takeaways
- Reuters reported that at least $676 million in crypto has moved from Shelbit to Binance since May 2024.
- About $540 million of that was reportedly transferred after regulators in Dubai stepped in in January 2025.
- Binance says it cannot confirm the amounts and points to earlier compliance checks and reports to authorities.
Binance is back in the spotlight after Reuters reported that at least $676 million (€589 million) in crypto has moved from the unlicensed Dubai exchange Shelbit to the platform since May 2024. Investigators say Shelbit is tied to an Iranian sanctions-evasion network, and Dubai regulators had already taken action against the company before that flow continued.
Money Flows After Dubai Intervention
Roughly $540 million (€470 million) of that $676 million (€589 million) reportedly moved after Dubai regulators moved against Shelbit in January 2025. Binance says it cannot verify that figure. Reuters said the exchange also stated that Shelbit never held its own account and was never listed on any sanctions list.
The company added that when users connected to Shelbit interacted with Binance, its compliance systems did what they were supposed to do: accounts were reviewed, frozen, and reported to authorities. Binance also said an outside analytics firm did not flag the activity as suspicious, though it did not identify the firm.
An Old Sanctions Case Still Looms
The latest report brings back an older issue for Binance. In November 2023, the company pleaded guilty to violating U.S. anti-money laundering and sanctions laws and paid $4.3 billion, one of the largest corporate penalties in U.S. history. Prosecutors in that case also said more than $898 million (€782 million) in transactions between U.S. and Iranian users passed through Binance from January 2018 to May 2022.
That settlement also came with a three-year independent compliance monitor. That makes the new questions around Shelbit even more sensitive, especially since Reuters reported that investigator Rich Sanders had already warned Binance about the exchange in October 2025. Based on the data Reuters reviewed, funds from Shelbit still continued to move to Binance after that warning.
Why This Matters
For European crypto watchers, the case is another reminder of how quickly transfers between unlicensed platforms and major exchanges can draw scrutiny. Dubai’s role is also important: VARA has already taken strong action against unlicensed crypto activity and recently said Shelbit posed a risk to the integrity of the financial system in a notice. That makes this more than just a Binance story. It is also a broader test of how enforcement works in cross-border crypto trading.
