Turkey investigates former FTX CEO Sam Bankman Fried for fraud, confiscates assets
Sam Bankman Fried, the former CEO of the defunct cryptocurrency exchange FTX, is the subject of the Turkish government's investigation.
The founder of the controversial currency trading network had his assets confiscated by Ankara authorities, according to local media.
Another FTX-related investigation was launched by the Turkish Financial Intelligence Unit.
Sam Bankman Fried (SBF), founder and former CEO of cryptocurrency exchange FTX, is the subject of an investigation by Turkish financial officials for alleged fraud. The action follows the launch of an investigation into the collapse of the company, which also ran a Turkish platform, in mid-November.
The Financial Crimes Investigation Board (FSIB), a division of the Ministry of Treasury and Finance, is responsible for both investigations. Anadolu Agency reported on Wednesday that as part of its investigation, authorities seized assets belonging to SBF and its subsidiaries.
Nurettin Nabati, Turkey's finance minister, on the situation and warned that the cryptocurrency market should be approached "with the greatest wisdom" due to the risks and opportunities brought by digitalization.
Many Turks have invested in crypto assets in recent years to protect their money from the country's rising lira inflation. Turkish investors have been hit by the failure of local trading platforms and scams, as well as the ongoing crypto winter.
FTX, one of the world's leading cryptocurrency exchanges, struggled with liquidity concerns and filed for Chapter 11 bankruptcy protection in the United States on November 11. It is currently under voluntary administration.
Bankman-Fried resigned, and three other senior executives were abandoned by the company's new management.
The FTX group of companies is currently being investigated not only in Turkey but also in the United States, the Bahamas where it is headquartered and Japan.
In other markets, licenses of the exchange and its subsidiaries have also been suspended. A recent report suggests that State Security Forces from the Bahamas could be extradited to the United States for questioning.
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