Turkish Authorities Order Seizure of 'Suspicious' FTX Assets

The country's Financial Crimes Investigation Board says Sam Bankman-Fried is also under investigation.

AccessTimeIconNov 25, 2022 at 11:58 a.m. UTC
Updated Nov 28, 2022 at 4:27 p.m. UTC
Drive the Crypto Policy Conversation Forward
October 24, 2023 • Convene • Washington D.C.Where the industry establishes the digital economy’s legal, regulatory and compliance best practices for the future.Register Now

Authorities in Turkey are looking to seize "suspicious assets" associated with collapsed crypto exchange FTX, and are investigating the platform's former CEO, Sam Bankman-Fried.

A Wednesday notice from the country's Financial Crimes Investigation Board, known as MASAK, says the agency had sought approval from the Istanbul Chief Public Prosecutor's Office to initiate "an investigation for various antecedent crimes and laundering the property values ​​arising from the crime" and to "confiscate the suspicious assets" in accordance with local law.

After a CoinDesk article scrutinizing the financial stability of Sam Bankman-Fried's crypto empire set off a series of events that culminated in a bankruptcy filing in the U.S., regulators in the numerous jurisdictions where the platform had a local presence have sprung to action, most notably in The Bahamas, where FTX was headquartered.

Since Nov. 14, MASAK has also been investigating the exchange's local unit, FTX Turkey. The ongoing investigations have shown that customers' trust was "not duly preserved" by the fallen company. Also, the authorities have "a strong suspicion of crime" being committed, particularly by Bankman-Fried who "directly or indirectly" controls the entities and persons through which FTX operates in Turkey, the notice said.

"As a result of our aforementioned application, a judicial investigation was opened against the suspects and a confiscation measure was applied to the assets of the suspects," the notice said in Turkish.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Sandali Handagama

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

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.