Turkish Authorities to Investigate SBF, Seize ‘Suspicious’ FTX Assets

Turkish Authorities to Investigate SBF, Seize 'Suspicious' FTX Assets
  • Turkish authorities are investigating Sam Bankman-Fried and his associates.
  • They will seize all of his assets in Turkey.

Turkish authorities have launched an investigation into the former CEO of FTX, Sam Bankman-Fried, on suspicion of fraud.

According to reports by Turkey’s state-run Anadolu Agency, the authorities have also seized “suspicious” assets linked to Bankman-Fried and other related parties.

Turkish Financial Crimes Investigation Board, also known as MASAK, published a notice mentioning FTX on Wednesday. The agency said that it had sought approval to investigate “various crimes” and seize the “suspicious assets” related to these crimes.

Turkey’s financial watchdog puts FTX under suspicion of failing to safely store consumer funds, embezzling these funds, and engaging in market manipulation. Turkey’s Treasury and Finance Minister Nureddin Nebati later confirmed the news.

MASAK has also been investigating FTX Turkey, the local branch of Bankman-Fried’s exchange. In a LinkedIn post last week, FTX TR said that it reached 110,000 users, a monthly transaction volume of 500-600 million dollars.

FTX Scandal Unfolds

Authorities in the Bahamas, where FTX is legally registered, have also seized some of FTX’s assets. Last week, the country’s financial regulator ordered Sam Bankman-Fried to transfer FTX’s assets to a government wallet.

Earlier this month, reports emerged that the U.S. Justice Department launched a probe into the FTX crisis. 

The investigation comes after FTX, a major cryptocurrency derivatives exchange, collapsed last month due to a liquidity crisis. Since its collapse, numerous allegations of illicit activity and financial and corporate impropriety have surfaced.

Some reports allege that Bankman-Fried misappropriated funds from the exchange to cover the trading losses of its sister firm, Alameda Research.

On the Flipside

  • Sam Bankman-Fried still denies any wrongdoing and is yet to be officially charged with any crime.

Why You Should Care

The Turkish investigation could shed some light on why Sam Bankman-Fried’s FTX collapsed.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a business journalist specializing in tech and crypto. He focuses on institutional investors, venture capital and the intersection between DeFi and tradFi. He wants to help retail investors understand how major financial institutions impact the crypto space. He has been active in blockchain and crypto since 2020 and believes that there is huge potential in decentralized tech and finance.