Turkish Law Enforcement Investigating into FTX Local Operations Following Collapse

UTC by Bhushan Akolkar · 3 min read
Turkish Law Enforcement Investigating into FTX Local Operations Following Collapse
Photo: Shutterstock

Similar to the US and the Bahamas, the Turkish law enforcement agency launched an investigation into institutions, people, banks, and crypto service providers associated with FTX.

After the dramatic collapse of the crypto exchange FTX last week, the Turkish Financial Crimes Investigation Agency is investigating FTX.com. The law enforcement agency published a report on Monday, November 14.

Turkish Law Enforcement Agency Pays Attention to FTX

As per the official notice by the Agency, they will look into institutions, people, banks, and crypto service providers associated with FTX. The investigation would include local subsidiary FTX Turkey listed among 134 entities tied to Sam Bankman-Fried‘s FTX.com which is currently seeking bankruptcy protection in the US.

Turkey has been a very fast-growing crypto market. Crypto adoption in the country skyrocketed especially after the devaluation of its local currency Lira. Turkey will now be joining jurisdictions like the US and the Bahamas that are actively probing Sam Bankman-Fried’s crypto empire.

New investigations have come just after all the drama that took place last week. A failed acquisition by Binance, FTX running dry of liquidity, a voluntary petition for insolvency, and a $600 million hack of the crypto exchange.

However, FTX Turkey has also been working at the same time to process customer withdrawals to a certain limit. Speaking of the development, FTX Turkey said:

“Even during the technical difficulties caused by FTX.com, the FTX TR [Turkey] team worked hard not to victimize the users by giving their best and continues to work. Sharing transparent information about the process from its social media accounts, we manage this process professionally and in a way that does not harm its users”.

Demand for Regulatory Action on Crypto

Post the FTX collapse, regulators have swung into action demanding strong action and necessary regulatory measures in the crypto space. The top US banking regulator has urged Congress to introduce a regulatory action on the crypto space.

In a prepared testimony on Monday, November 14, Michael Barr, the Fed’s vice chair for supervision said: “recent events in crypto … have highlighted the risks to investors and consumers associated with new and novel asset classes and activities when not accompanied by strong guardrails. Crypto-asset-related activity, requires effective oversight”.

He further added that the Fed is working along with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp “to assess the risks and opportunities posed by a range of crypto-asset-related activities”.

Additionally, Binance CEO Changpeng Zhao has also spoken on the need of establishing a global crypto standard on Monday. Speaking at a conference in Bali, Indonesia, he said:

“As an industry we need to increase transparency. We need to work very closely with regulators all around the world to make this industry more robust. There is a strong role for regulators to play but we can’t blame this on any single party.”

Read other news from the crypto industry on our website.

Altcoin News, Blockchain News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

WhaleMaker
Related Articles
WhaleMaker