After declaring bankruptcy on November 11, the bankrupt exchange, FTX, has been the focus of regulatory scrutiny from various countries, and the exchange is now under the strict supervision of Turkey’s authorities.
Turkey’s Ministry of Finance on Wednesday announced an investigation into SBF over allegations of fraud, during which the assets of SBF and other affiliated companies were seized, according to Anadolu Agency. https://t.co/POI5N1c7yl
— Wu Blockchain (@WuBlockchain) November 24, 2022
Turkey has launched an investigation into Samuel Bankman-Fried, former CEO of cryptocurrency exchange FTX, over fraud allegations, according to the country’s Treasury and Finance Minister Nureddin Nebati.
The collapse of the FTX exchange has prompted governments around the world to issue warnings and highlight the risks associated with the cryptocurrency ecosystem. Treasury and Finance Minister Nureddin Nebati said in a statement that the cryptocurrency market had to be treated with “maximum caution,” arguing that this sector brings both new risks and opportunities.
Assets of FTX affiliates have also been seized, according to the Turkish Financial Crimes Investigation Board (MASAK), who added that their investigation has found “strong criminal suspicion” of FTX’s misconduct in the crypto-assets market, including fabricating buying and selling transactions.
MASAK also stated that the company is highly suspicious of clients’ trust assets being transferred to third parties through irregular transactions.
Bankman-Fried’s cryptocurrency empire includes FTX TR, a subsidiary based in Turkey.
Turkey is one of the top countries in terms of cryptocurrency adoption, owing primarily to the lira’s depreciation. The Turkish central bank announced last month that it intends to launch a central bank digital currency project in 2023. Prior to the launch, the central bank will pilot its CBDC with other banks.
Meanwhile, US and Bahamas authorities are reportedly discussing the possibility of extraditing Sam Bankman-Fried, the company’s former CEO, back to the US for questioning.
Bankman-Fried apologised to his employees in a letter, saying he “never intended this to happen.” According to reports, the entrepreneur planned to flee to Argentina or the UAE following the scandal.
