Turkish authorities have confiscated the assets of bankrupt cryptocurrency exchange FTX, whose founder Sam Bankman-Freed reportedly escaped with more than a billion dollars in investor money.
In a statement yesterday, the Turkish Ministry of Finance and Treasury announced that it had opened an investigation into allegations of fraud against Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX. During this investigation, the Turkish authorities seized his assets in the FTX TR subsidiary, as well as the assets of his company’s affiliates.
Bankman-Fried and FTX, which filed for bankruptcy this month and reportedly lost $32 billion to $1 billion in liquid assets, have been accused of swindling investors of their money and using it to fund and buy real estate for another of his companies. , Alameda. Research work.
Other allegations pointing to fraud include that the disgraced CEO and FTX never held board meetings, lacked the positions needed to run the cryptocurrency platform, and that many of the employees were fake to keep the scheme going.
After the collapse of FTX, Bankman-Freed fled to the Bahamas, where there is no extradition treaty with the United States and where his parents bought $121 million worth of real estate with allegedly stolen investor funds.
SBF spotted at his penthouse in the Bahamas with parents enjoying a meal before Thanksgiving 👀 pic.twitter.com/qscgN6nhoR
— Cryptocurrency Crib (@Crypto_Crib_) November 23, 2022
Meanwhile, the FTX cryptocurrency token, FTT, and the larger crypto market have since gone through a complete downturn, with many FTX-related companies appearing close to filing for bankruptcy.
Bankman-Fried said Alameda, which had $8 billion in customer funds earmarked for FTX, only held customer funds because it received money from them before FTX opened its own bank account, tying this to an inadvertent failure.
Eventually, after apologizing to investors in a series of tweets, he told former FTX employees that Alameda’s over-borrowing was the cause of FTX’s decline and insisted that he was unaware of the margin positions taken by traders.
Despite allegations of fraud against Bankman-Fried, many mainstream media outlets have been accused of being sympathetic to him and justifying siphoning off client funds with a simple case of mismanagement, allowing him to speak New York TimesDealBook summit next week.
The disgraced CEO has also been one of the biggest contributors to the US Democratic Party and current President Joe Biden’s campaign and has regularly spoken at events with the likes of former President Bill Clinton and former British Prime Minister Tony Blair, leading many to speculate the FTX scandal could be associated with leading political figures and deliberately covered by them.
In a statement, Turkish Minister of Finance and Finance Nureddin Nebati warned that the crypto market needs to be approached with “the utmost caution” following this latest alleged Ponzi scheme that surpasses that of the infamous Bernie Madoff.
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