Turkish Law Enforcement Investigating FTX's Local Arm Following Wipeout

Turkey's Financial Crimes Investigation Agency said it is looking into individuals, institutions, banks and crypto service providers with ties to FTX.com after its swift collapse last week.

AccessTimeIconNov 14, 2022 at 6:36 p.m. UTC
Updated Nov 15, 2022 at 12:05 p.m. UTC
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Turkey's Financial Crimes Investigation Agency is investigating FTX.com following the crypto exchange's dramatic collapse last week, according to an official notice published on Monday.

The agency will look into people, institutions, banks and crypto service providers related to FTX, the notice said. This may include local subsidiary FTX Turkey, which is listed among 134 entities tied to Sam Bankman-Fried's FTX.com that are now seeking protection from bankruptcy in the U.S.

With the investigation, Turkey – a fast-growing crypto market – is joining jurisdictions such as the U.S. and the Bahamas (where the global business had its headquarters), in probing Sam Bankman-Fried's crypto enterprise. News of investigations comes after a tumultuous week filled with a failed acquisition deal, rumors, a voluntary petition for insolvency and a $600 million hack of the embattled exchange.

Meanwhile, FTX Turkey has been working to process customer withdrawals within certain limits. The subsidiary told CoinDesk Turkey that its goal is to get all customer funds returned.

"Even during the technical difficulties caused by FTX.com, the FTX TR [Turkey] team worked hard not to victimize the users by giving their best and continues to work. Sharing transparent information about the process from its social media accounts, we manage this process professionally and in a way that does not harm its users,” FTX Turkey said.

CoinDesk reported last week that many of the 134 entities listed in the FTX bankruptcy petition learned of the filing at the same time as the public did. One source told CoinDesk at the time that FTX Turkey was hit particularly hard, with staff in Turkey having put their paychecks and bonuses into the company because of a distrust of local banks and inflation of the lira.


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Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.

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