- Turkish authorities have frozen the accounts of Bankman-Fried and its subsidiaries.
- There are advantages and disadvantages to the growing crypto sector as per the minister.
The Turkish Treasury and Finance Ministry said on Wednesday that an investigation into allegations of fraud against Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, had begun. To aid with their investigation, Turkish authorities have frozen the accounts of Bankman-Fried and its subsidiaries.
The Minister of Treasury and Finance, Nureddin Nebati, made a statement urging “maximum caution” while dealing with the cryptocurrency market. His reasoning was that there are advantages and disadvantages to the growing crypto sector.
Worst Turmoil in Recent Times
The FTX exchange, its native token FTT, and the wider crypto market have all been in freefall despite Bankman-Fried’s subsequent apology to investors through a series of tweets. Many enterprises with ties to FTX have also been feeling the pressure and are on the verge of bankruptcy. The Bankman-Fried’s bankrupt cryptocurrency enterprise includes the Turkish branch FTX TR.
It was previously reported that FTX backed Alameda Research, used client funds worth billions of dollars to fund unsafe transactions, and even extended personal loans to the management, all of which contributed to the company’s unexpected demise. Because it lacked the necessary working capital to close the shortfall, FTX filed for bankruptcy with just $1 billion in cash on hand.
Binance, the largest cryptocurrency exchange, signed a letter of intent to purchase its competitor, FTX, earlier this month. FTX had been experiencing financial difficulties and needed a rescue. But once Binance investigated FTX, the idea fell through around 24 hours later. During the FTX crisis, the FTX CEO’s fortune plunged by 94% in a single day from billions to $991.5 million.
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