Turkey Seizes Assets Belonging to Sam Bankman-Fried
- Officials in Turkey believe Sam Bankman-Fried mishandled users’ funds and manipulated the market.
- FTX’s collapse was a mixture of a leadership crisis and a run on the bank.
Authorities in Turkey have reportedly seized assets belonging to former FTX CEO Sam Bankman-Fried following the collapse of the exchange. Bannkman-Fried has been subject to multiple probes in different countries since FTX filed for bankruptcy.
The Turkish Treasury and Finance Ministry released a statement noting that it had opened an inquiry into claims of fraud against 30-year-old Sam Bankman-Fried. The government is investigating FTX as well as other entities connected to the exchange, such as financial institutions and companies that provide crypto services.
The Financial Crimes Investigation Board (MASAK), a division of the Ministry of Treasury and Finance, is in charge of both investigations, which were initiated in accordance with the nation’s anti-money laundering regulations.
MASAK said it concluded that FTX mishandled user funds, embezzled money from clients through dubious business dealings, and manipulated supply and demand by allowing users to trade listed cryptocurrencies that were not backed by real crypto holdings. In light of these discoveries, MASAK said it confiscated the assets of Bankman-Fried and some of his associates after establishing a reasonable “criminal suspicion” over the aforementioned facts.
FTX’s attorneys recently explained how the vast empire built by Sam Bankman-Fried was brought to its knees in a matter of days during a court hearing on Tuesday. They painted a picture of a corporation rife with instability and poor management. James Bromley, an attorney for FTX, said the exchange’s collapse was “one of the most abrupt and difficult collapses in the history of corporate America.”
At its peak, FTX was one of the most well-known crypto exchanges worldwide, and just a few weeks ago, everything seemed fine. But the vast company was reduced to dust in a matter of hours and filed for bankruptcy on November 11. The crypto exchange is currently exploring how to sell off assets, make payments to clients, and satisfy creditors. FTX also ushered in a new team to stabilize the firm, but it appears the damage is beyond repair.
Bromley on Tuesday confirmed the fears of millions of customers, noting that his team discovered that “a substantial amount of assets have either been stolen or are missing.” It appears that users’ funds are currently nowhere to be found.
Many crypto users have labelled FTX as the greatest betrayal in history. Legal experts claim FTX never hired professionals to audit its financial records, meaning investors most likely never received accurate information.