Turkey freezes FTX assets in the country amid ongoing investigation


The assets of former FTX CEO Sam Bankman-Fried have been seized by the country’s Financial Crimes Investigation Board, known locally as Masak, following the collapse of his main company.

An official announcement from Turkey’s Masak outlined its preliminary findings and actions to be taken against Bankman-Fried following its core business bankruptcy proceedings. MAASAK started an investigation on 14 November.

Cointelegraph translated Musk’s latest announcement, which highlights three key points from the research.

The Turkish investigative body found that FTX failed to securely store user funds, embezzled client funds through suspicious transactions, and manipulated market supply and demand to trick clients into buying and selling exchange-listed cryptocurrencies at a fair price . Were not backed by cryptocurrency holdings.

As a result of these findings, MASAK seized the assets of Bankman-Fried and affiliates after finding strong ‘criminal suspicion’ on the above points.

FTX TR’s website is still live, but only shows a message to users with instructions on how to get balances from accounts. Users are asked to share the IBAN information and Turkish identification number of their accounts in Turkish Lira via a link.

A LinkedIn post from FTX TR noted that the exchange had more than 110,000 users and processed an average monthly transaction volume of $500 to $600 million since the launch of the mobile application in 2022. The company employed 27 people.

The message also states that the company has attempted to transfer user balances in FTX TR to their bank accounts.

RELATED: FTX stake in U.S. bank raises concerns about banking loopholes

FTX TR is managed by a former Binance executive who previously led global business development in Turkey, CIS and EU. Cointelegraph has reached out to the former head of FTX TR to find out if the local operation was aware of the parent company’s improper business practices and will update this article accordingly.

Also read  PB Fintech, Paytm, Nykaa and Delhivery: Here's what JM Financial has to say about internet companies

According to a local media report, the FTX website attracted an average of 187,000 unique visitors from Turkey each month, the sixth largest number by country.

FTX is now going through bankruptcy proceedings under new CEO John Ray III. The man responsible for exposing Enron’s infamous collapse in the early 2000s saw the FTX debacle as the worst of his professional career.

FTX’s global assets are currently being strategically assessed as part of the bankruptcy proceedings to maximize recoverable value for stakeholders.




Leave a Comment