Turkey Initiates Investigation against CEO of FTX over Suspicion of Fraud
Sam Bankman-Fried (SBF), the former CEO of FTX, would also be answerable to the Turkish Government as the Turkish law enforcement agencies have initiated an investigation against SBF over allegations of fraud.
As a first step in the investigation, the assets belonging to SBF in Turkey have been seized by the authorities.
Turkish Probe of SBF
News published in the Turkish media was highlighted globally because the news item involved FTX and its former CEO, Sam Bankman-Fried (SBF).
The news item suggested that SBF would be answerable to Turkish law enforcement agencies in allegations of fraud leveled against him.
As reported, the Turkish investigation against SBF shall be pursued by the initiator namely the Turkish Financial Intelligence Unit (FIU).
It has been alleged by FIU that since FTX was doing its business in Turkey and huge funds of Turkish citizens are at stake, hence, the authority is suspicious of fraud.
The investigation has been assigned to a Turkish Federal Government controlled authority namely Financial Crimes Investigation Board (MASAK).
MASAK shall hence be pursuing two separate probes, one against FTX and the other against SBF, suggest the news.
Seizure of Assets and Funds
As an interim measure, MASAK has reportedly seized assets belonging to SBF and of those local entities which were affiliated with SBF. Asset seizure was later confirmed on 23rd November by a local media outlet called ‘Anadolu Agency.
Nureddin Nebati, the Finance Minister of Turkey, commented that Turkish citizens were introduced to extreme risks in the shape of crypto investments.
He warned that digital asset markets must not be taken for granted and suggested a careful approach, if necessary.
Why Turks Got Involved In Crypto?
When worldwide economies were hit by the effects of a global pandemic, Turkey’s economy was already in turmoil. However, the pandemic fueled the economic crisis further which led to skyrocketing inflation rates.
As resultantly, the national fiat of the country namely ‘Lira’ gradually edged down and during the process Governor of the Turkish central bank was removed.
Left with no suitable option, Turks turned their attention towards digital currencies, such as Bitcoin, Polygon, XRP, etc., perhaps because the industry was booming at the relevant time.
Turkish investors have incurred huge financial losses at the hands of a deteriorating economy, crypto scams, crypto winter, and the latest by FTX’s fall.
Apart from Turkey, there have been separate probes initiated against FTX and SBF in various countries. Amongst these investigations, some of them are being pursued by authorities mainly in the US, Japan, the UK, and the Bahamas.
Action against FTX involved the suspension of licenses of FTX’s subsidiaries in several countries.
On the other hand, SBF has been named in multiple investigations which involve allegations of mishandling and misappropriation of public funds.
In the meanwhile, authorities in Bahama have sent SBF’s extradition request to the concerned authorities in the US.