US Sanctions Reveal $6.3 Billion Crypto Pipeline Between Iran and Russia
On August 7, US authorities imposed sanctions on two Iranian-linked cryptocurrency platforms, Shelbit and Aban Tether, for their roles in facilitating transactions associated with Iran’s Islamic Revolutionary Guard Corps (IRGC) and other state-affiliated entities. The US Treasury Department also sanctioned Shelbit's founder, Siavash Kayvanpour, along with several companies connected to him in Georgia, Poland, and the UAE.
According to the Treasury, wallets linked to the IRGC transferred over $1 million to Shelbit addresses, while more than $2 million flowed in the opposite direction. Shelbit's operations mimicked a settlement network rather than a traditional exchange, as it processed over $6.3 billion through its wallets from May 2024 to March 2026, with transaction volumes surging to over $600 million monthly in late 2025.
TRM Labs' analysis revealed that Shelbit's high-volume wallets showed a near-perfect match between incoming and outgoing amounts, indicating that it primarily relayed payments rather than holding customer assets. The platform heavily relied on USDT for transactions, with approximately 88% of its activity conducted via the Tron network.
Additionally, Shelbit's infrastructure was linked to Russian payment networks, facilitating cross-border transactions amid sanctions. TRM identified around $318 million in transactions involving Shelbit and Russia’s A7 payment network, which is designed to help Russian users bypass Western financial restrictions.
This operation highlights the growing complexity of sanctions enforcement, as Western authorities are increasingly targeting broader financial infrastructures rather than individual exchanges.
Updated 13:32 UTC
New Developments in the Strait of Hormuz
- MarineTraffic reported a significant decline in maritime crossings through the Strait of Hormuz, with vessel crossings dropping from 15 on Friday to 11 on Saturday and further to six on Sunday.
- This decline is part of the ongoing 2026 Strait of Hormuz crisis, impacting shipping between Iran, Oman, and the wider Gulf region.
- The Strait of Hormuz is a crucial chokepoint for global oil flows, and reduced traffic indicates heightened maritime risks amid regional tensions.
- Current market pricing suggests a decreasing likelihood of traffic normalization by September 30, with odds dropping from 20% to 16.5% in the past 24 hours.
- Persistent low and uneven traffic levels may indicate ongoing challenges to achieving pre-crisis normalcy.
- Observers are advised to monitor U.S.-Iran relations, as diplomatic or military actions could significantly influence the maritime situation.
- There are 51 days left until the market resolution date on September 30.
FAQ
What are the recent US sanctions related to cryptocurrency and Iran?
On August 7, US authorities imposed sanctions on two Iranian-linked cryptocurrency platforms, Shelbit and Aban Tether, for facilitating transactions associated with Iran’s Islamic Revolutionary Guard Corps (IRGC) and other state-affiliated entities.
How much money was processed through Shelbit's wallets?
Shelbit processed over $6.3 billion through its wallets from May 2024 to March 2026, with transaction volumes surging to over $600 million monthly in late 2025.
What role did Shelbit play in cryptocurrency transactions?
Shelbit operated more like a settlement network rather than a traditional exchange, primarily relaying payments rather than holding customer assets, with a near-perfect match between incoming and outgoing amounts.
Which cryptocurrency was predominantly used on Shelbit?
Approximately 88% of Shelbit's activity was conducted using USDT (Tether), primarily through the Tron network.
How did Shelbit facilitate cross-border transactions amid sanctions?
Shelbit's infrastructure was linked to Russian payment networks, specifically the A7 payment network, which helps Russian users bypass Western financial restrictions.
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