top of page

Massive Crypto Scam: Turkish Authorities Arrest 127 in $1 Billion Ponzi Scheme

Turkish authorities arrest 127 in a $1 billion crypto scam, revealing a major Ponzi scheme. Over 50,000 victims left in debt as the operation unfolds

In a significant crackdown on financial fraud, Turkish authorities have detained 127 individuals involved in a major crypto scam, exposing a Ponzi scheme that defrauded investors of over $1 billion. The operation, dubbed “CYBERGÖZ-42,” was conducted in Ankara and marks a pivotal moment in the fight against cryptocurrency fraud in Turkey.

Crypto Ponzi Scheme Busted in Ankara

On Thursday, Turkey’s Minister of Interior, Ali Yerlikaya, revealed the details of a large-scale operation targeting a fraudulent crypto platform, Smart Trade Coin (STC). This platform lured investors with promises of high profits and zero risk, utilizing deceptive tactics such as a “Stop loss” function and “advanced trading bots” that supposedly performed automatic buy and sell transactions.

The Extent of the Fraud

The investigation exposed Smart Trade Coin as a traditional Ponzi scheme, where new investors' funds were used to pay returns to earlier investors. Over the last few years, the scheme siphoned off more than $1 billion, equivalent to 32 billion Turkish Lira. Authorities seized 177 immovable assets and 61 movable assets worth 1 billion Turkish Lira during the operation. Additionally, they confiscated an unlicensed gun, a blank firearm, and various crypto assets.

Victims' Plight and Long-standing Concerns

The scam has left a trail of financial ruin, with more than 50,000 individuals falling victim to the fraudulent scheme. Many were persuaded to take loans or sell their properties, enticed by promises of a 36 percent profit per month. Instead, they ended up in debt and empty-handed. Despite numerous complaints and protests from affected investors since 2021, the authorities had not taken substantial action until now.

Investigations and Warnings

In 2023, AI Multiple Research, a data analysis platform, conducted a study on Smart Trade Coin, concluding that it was likely a scam and advising potential investors to steer clear. The research highlighted the platform's opaque business practices, misleading marketing, and lack of transparency as clear indicators of fraudulent activity.

A Wake-Up Call for Crypto Investors and Regulators

The arrest of 127 suspects in this massive crypto scam underscores the importance of vigilance and regulatory oversight in the rapidly evolving cryptocurrency market. As authorities continue to crack down on fraudulent schemes, investors are urged to exercise caution and thoroughly research any platform before investing.

This significant bust serves as a stark reminder of the potential risks in the world of cryptocurrency and the critical need for robust legal frameworks to protect investors from such malicious schemes.

Seek Justice with Expert Crypto Lawyers in Turkey

If you or someone you know has been affected by this massive crypto scam, don't hesitate to take action. Kurucuk & Associates Law Firm in Istanbul, Turkey, specializes in crypto-related legal matters and is here to help you navigate this complex situation. Our experienced crypto lawyers in Turkey are dedicated to fighting for your rights and recovering your lost investments. Contact us today for a consultation and let us assist you in seeking the justice you deserve.

27 views0 comments


bottom of page