The Turkish government has launched an investigation into the former CEO of failed cryptocurrency exchange FTX, Sam Bankman-Fried. According to local media, authorities in Ankara have also seized assets belonging to the founder of the troubled coin trading platform.
Turkey’s Financial Intelligence Unit is launching another FTX-related investigation
Financial regulators in Turkey have begun investigating the founder and former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried (SBF), for alleged fraud. The move follows the opening in mid-November of an investigation into the bankruptcy of the company, which also operated a Turkish platform.
Both investigations are being led by the country’s Financial Crimes Investigation Board (MASAK), a division of the Ministry of Treasury and Finance. As part of that, authorities have confiscated assets of SBF and other affiliates, Anadolu Agency reported on Wednesday.
Commenting on the case, Turkey’s Finance Minister Nuredin Nebati highlighted the risks that digitization brings along with the opportunities, warning that the cryptocurrency market should be approached with “maximum caution.”
Amid skyrocketing inflation in the nation’s fiat currency, the lira, many Turks have poured money into crypto assets over the past few years to preserve their savings. However, local trading platform failures and scams, as well as the ongoing crypto winter, have hurt Turkish investors.
FTX, which was one of the top crypto exchanges in the world, filed for Chapter 11 bankruptcy protection in the US on November 11 after experiencing liquidity problems, and is now under voluntary administration. Bankman-Fried resigned and the group’s new management fired three other senior executives.
In addition to Turkey, the FTX group of companies is now under investigation in a number of other jurisdictions, including the United States, the Bahamas, where it was headquartered, and Japan. The exchange and its subsidiaries have also seen their licenses suspended in multiple markets. According to a recent report, Bahamian authorities may extradite SBF to the US for questioning.
Do you expect financial authorities in other countries to investigate former FTX CEO Sam Bankman-Fried? Let us know in the comments section below.
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