Crypto

Turkiye Seizes Sam Bankman-Fried Assets After FTX Collapse, Alleged Crypto Fraud

Turkish authorities have seized assets belonging to bankrupt cryptocurrency exchange, FTX, which went bankrupt and whose founder, Sam Bankman-Fried, escaped with more than $1 billion in cash of investors.

In a statement yesterday, the Turkish Ministry of Treasury and Finance announced that an investigation had been opened into allegations of fraud against Sam Bankman-Fried, the former CEO of the FTX cryptocurrency. During this investigation, the Turkish authorities seized his assets under the FTX TR subsidiary, as well as those of his company’s subsidiaries.

Bankman-Fried and FTX – which collapsed this month and reportedly went from being worth $32 billion to just $1 billion in liquid assets – have been accused of defrauding investors of their money and to use it to fund and purchase real estate for his other company, Alameda Search.

Other allegations pointing to fraud include the disgraced CEO and FTX never having board meetings, missing positions essential to a functioning cryptocurrency platform, and that many employees were fake to maintain the system.

After the collapse of FTX, Bankman-Fried fled to the Bahamas, where no extradition treaty with the United States is in place and where his parents purchased property worth $121 million. using allegedly stolen investor funds.

Meanwhile, FTX’s cryptocurrency token, FTT, and the broader crypto market have since suffered a complete freefall, with many FTX-associated companies seemingly on the verge of filing for bankruptcy as well.

Bankman-Fried claimed that Alameda – which held $8 billion in client funds destined for FTX – was only in possession of client funds because it received the money from them before the FTX exchange n has his own bank account, putting him to involuntary failure.

Eventually issuing an apology to investors in a series of tweets, he told former FTX employees that Alameda’s excessive borrowing was responsible for FTX’s demise, and insisted he was unaware margin positions taken by traders.

Despite the fraud allegations against Bankman-Fried, many mainstream media outlets have been accused of sympathizing with him and condoning the embezzlement of client funds as a simple case of mismanagement, allowing him to talk at The New York Times‘ DealBook Summit next week.

The disgraced CEO was also one of the biggest donors to the US Democratic Party and current President Joe Biden’s campaign, and regularly spoke at events with the likes of former President Bill Clinton and former British Prime Minister, Tony Blair, leading many to speculate. the FTX scandal might be associated with prominent political figures and deliberately covered up by them.

In a statement, Turkish Treasury and Finance Minister Nureddin Nebati warned that the cryptocurrency market should be approached with “the utmost caution” after this latest alleged Ponzi scheme, which surpasses that of the infamous Bernie. Madoff.

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