Breaking: Turkey seizes assets of FTX founder Sam Bankman-Fried
According to a statement by the Treasury and Finance Ministry of Turkey on Wednesday, fraud allegations against Sam Bankman-Fried (ex-CEO of cryptocurrency exchange FTX) have been raised. The assets of Bankman-Fried as well as its affiliates were also confiscated by the Turkish authorities during the investigation.
Turkish Crimes Investigation Board takes on FTX
Minister of Treasury and Finance Nureddin Nebati issued a statement in the which he stated that the cryptocurrency market must be approached with “maximum care”. This argument was based on the fact the crypto industry presents both new risks as well as new opportunities.
Despite Bankman-Fried’s apology to investors, which was in the form of a series tweets, the FTX, FTT and the larger crypto market are now in complete freefall. Many FTX-associated businesses have also been in trouble, and many are on the brink bankruptcy filings.
Read More: BlockFi Preps For Potential Bankruptcy After FTX Collapse
FTX TR is a Turkish subsidiary of the Bankman-Fried’s failed cryptocurrency empire.
The ongoing FTX Saga
CoinGape reported that FTX funded Alameda Research with billions of dollars of customer assets. This was to finance risky trades as well as personal loans to the management. FTX had only $1 billion in liquid assets and was unable to bridge the gap. Eventually, it filed for bankruptcy.
Read More: FTX Exchange Files for Bankruptcy
Binance, a crypto giant, signed a letter of intent to acquire FTX, earlier this month in what appeared to be a bailout for the troubled exchange. Binance’s diligence on FTX led to the plan failing 24 hours later.
Read More: John Ray III Joins FTX as New CEO
The once-leader in crypto exchanges, the renowned one, has been dissolved in a matter of weeks. SBF, the founder of the crypto exchange, once had a net worth exceeding $16 billion. However, he lost 98% of that wealth in a single day after FTX collapsed.
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