Turkish authorities seize FTX founder Sam Bankman-Fried’s assets amidst a probe into the collapse of the Istanbul-based crypto exchange FTX.
According to the Turkish Treasury and Finance Ministry, an inquiry into claims of fraud against the FTX former CEO Bankman-Fried has been opened.
In addition to FTX, the agency is also investigating individuals and companies associated with the company, including banks and crypto asset service providers.
Under the country’s anti-money laundering laws, MASAK has launched two investigations. These investigations are being led by MASAK, a department within the Ministry of Treasury and Finance.
The Turkish government has now added cryptocurrency exchanges to the list of entities subject to their AML/TF regulations. The law went into effect on May 2021.
One of the top crypto exchanges by trading volume, FTX, filed for Chapter 11 bankruptcy protection in the U.S. on November 11th. Their liquidity issues caused them to take this measure, which is now being done voluntarily under administration.
Allegedly, this exchange was using client funds for risky investment bets. They were doing it by sending money to Alameda Research, a trading firm founded by Bankman-Fried.
When the cryptocurrency exchange that Bankman-Fried was a part of collapsed, the CEO resigned on the same day. After this, he reportedly went to stay at an island in the Bahamas with his parents and other members of management.
Earlier this week, the FTX case was withdrawn from New York to Delaware. This affected the companies involved and the people who owed money–approximately 50 of these creditors—to FTX.
James Bromley, counsel to FTX’s new management, has accused Bankman-Fried of misusing the exchange as an instrument of “personal greed.”
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