Authorities in Turkey seize FTX assets as part of their ongoing investigation

Key Takeaways:

• Authorities in Turkey are attempting to recoup “suspicious assets” connected to the defunct FTX cryptocurrency exchange.

• The founder of the defunct cryptocurrency exchange, Sam Bankman-Fried, is reportedly also under investigation, according to the nation’s Financial Crimes Investigation Board MASAK.

Sam Bankman-Fried and other partners’ assets have been seized by Turkish authorities as part of an investigation into the breakdown of the FTX cryptocurrency exchange, according to a statement released on Wednesday by the Turkish Treasury and Finance Ministry.

Nureddin Nebati, Turkey’s finance minister, commented on the situation and warned that the cryptocurrency market should be propositioned with “maximum caution” due to the dangers and opportunities that digitization has brought.

Following the failure of his FTX exchange, Sam Bankman-Fried was the subject of an official notice from Turkey’s Financial Crimes Investigation Board, or MASAK, outlining the conclusions and actions taken against him.

The notice issued read:

“In response to our aforementioned application, a legal investigation into the suspects was started, and a confiscation measure was implemented to the suspects’ assets.”

Many Turks invested in crypto assets in recent years to protect their savings from the country’s lira’s skyrocketing inflation. Turkish investors have been harmed by the inadequacies of domestic trading platforms and frauds, as well as the continuing crypto winter.

Since November 14, MASAK has also been looking into FTX Turkey, a local branch of the exchange. The continued research have revealed that the defunct company “not duly preserved” the users’ faith, and the officials have “a strong suspicion of a crime,”, especially in relation to Bankman-Fried, who “directly or indirectly” influences the organizations and individuals through which FTX works in Turkey, the notice explained.

In May 2021, the Turkish government included cryptocurrency exchanges on the list of organizations governed by the nation’s anti-money laundering and terrorism financing (AML / TF) laws.

The FTX group of companies is currently being investigated not only in Turkey but also in the United States, the Bahamas, where it had its headquarters, and Japan. In numerous markets, the exchange’s and its subsidiaries’ licenses have also been suspended. A recent report states that SBF could be extradited from the Bahamas to the United States for questioning.

Sadly, given that Turkey is one of the crypto-friendly nations, the failure of this exchange resulted in significant losses for Turkish citizens.