Turkey Launches A Probe Into FTX Founder Sam Bankman-Fried
- The Ministry of Finance of Turkey are investigating the collapse of the former multi-billion dollar crypto exchange FTX and its founder and former CEO Sam Bankman-Fried, is also a part of the investigation.
- Treasury and Finance Minister of Turkey Nureddin Nebati revealed that the investigation has been spearheaded by the country’s Financial Crimes Investigation Board (MASAK).
- The regulators in the US including the Justice Department (DoJ), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) are all investigating FTX as well.
The collapse of one of the biggest exchanges in the crypto industry in just a few weeks has attracted the attention of multiple regulators around the globe. As a result, the Ministry of Finance of Turkey has launched a probe into the collapse of the former multi-billion dollar crypto firm, and its founder and former CEO, Sam Bankman-Fried, also known as SBF in the crypto space, is also a part of the investigation.
As per a report, the Treasury and Finance Ministry of Turkey announced on Wednesday that it is investigating the exchange, which was once valued at over $32 billion, and its founder who is also a former crypto billionaire but now is worth under a billion dollars. Following the announcement of the probe, the assets of the former FTX executive and his firm have been seized over fraud allegations and the details are being gathered.
Treasury and Finance Minister of Turkey Nureddin Nebati revealed that the investigation has been spearheaded by the country’s Financial Crimes Investigation Board (MASAK). While talking about the future of the crypto space and the potential risks that the digitization of assets possess, Nebati stated that each investor and potential backers of blockchain-based assets must proceed with “maximum caution.”
Turkey Is Not The Only One
FTX was once the second-largest crypto exchange, only surpassed by Changpeng Zhao’s Binance, which has been the industry leader for quite some years. It is only natural that the collapse of such a huge firm overnight would attract the attention of every regulatory authority on a global scale.
While Turkey continues to investigation the collapse of the firm, The Justice Department (DoJ), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) are all investigating the operating process and other details related to the crypto exchange which filed for Bankruptcy earlier this month. Moreover, the founder of the firm is also being investigated for his involvement with Alameda Research and FTX.
Interestingly, the US authorities are discussing with authorities in the Bahamas whether to extradite former FTX CEO Sam Bankman-Fried for questioning.
On the other hand, the new FTX CEO John Ray revealed that SBF mismanaged the funds that his customers deposited in their accounts and lived a life of luxury as a result. He owned a jaw-dropping five-bedroom penthouse in the Bahamas. On the other hand, his parents purchased properties worth $121 million in the Bahamas.
Upon his appointment, the new CEO of FTX said:
“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”