Amid a probe into the collapse of the FTX cryptocurrency trade, Turkish authorities have seized the belongings of Sam Bankman-Fried and different associates, the Turkish Treasury and Finance Ministry announced on Wednesday.
An inquiry into claims of fraud in opposition to the FTX former CEO Bankman-Fried has been opened as properly, in response to the assertion.
The transfer follows final week’s initiation of a probe into the collapse of the trade, which ran an area subsidiary known as FTX Turkey.
Together with FTX, the company can be trying into people and corporations related to the trade, together with monetary establishments and crypto asset service suppliers.
Each investigations, launched underneath the nation’s anti-money laundering legal guidelines, are led by the nation’s Monetary Crimes Investigation Board (MASAK), a division underneath the Ministry of Treasury and Finance.
The Turkish authorities added cryptocurrency exchanges to the record of entities topic to the nation’s anti-money laundering and terrorism financing (AML / TF) rules in Could 2021.
The FTX implosion
FTX, as soon as the third-largest crypto trade by buying and selling quantity, filed for Chapter 11 chapter safety within the U.S. on November 11, after working into liquidity points, and is now underneath voluntary administration.
The trade was allegedly utilizing shopper cash to make dangerous funding bets via Alameda Analysis, a buying and selling agency based by Bankman-Fried.
Bankman-Fried resigned as CEO on the identical day as properly and is at the moment within the Bahamas, the place his dad and mom and senior executives of the failed cryptocurrency trade reportedly bought property worth $121 million utilizing prospects’ funds.
Earlier this week, the decide overseeing the FTX case agreed to formally transfer a Chapter 15 chapter case filed by Bahamian liquidators from New York to Delaware whereas retaining the names and addresses of the highest 50 collectors—owed roughly $3.1 billion—redacted.
In accordance with James Bromley, counsel to FTX’s new administration, there was a “lack of company controls” on the trade, with Bankman-Fried utilizing FTX as his “private fiefdom.”
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