Turkey Freezes $1 Billion in Cryptocurrency Linked to Illegal Gambling Operations

Turkey’s Stance on Cryptocurrency and Illegal Gambling

Turkey has taken strong measures against cryptocurrencies and unlawful gambling activities, viewing them as threats to the national currency, potential avenues for tax evasion, and risks to the overall economy.

Major Asset Seizures and Arrests

As part of a coordinated crackdown, authorities in Istanbul have confiscated over $500 million in assets tied to one of the main suspects, Veysel Sahin. This seizure occurred on January 30, sparking the arrest of another individual connected to the case. In total, an additional $500 million was seized from this second suspect, who remains unnamed but is believed to be involved in the same illegal gambling network that utilized cryptocurrency to launder money.

Collaboration Between Law Enforcement and Private Sector

The government’s success in this operation was aided by collaboration with the private firm Tether Holdings SA. This company specializes in assisting law enforcement with freezing assets across various jurisdictions in cases involving serious crimes such as drug trafficking, money laundering, and sanction evasion.

The Role of Tether Holdings SA and Its CEO

Founded by Paolo Ardoino, who also leads the company, Tether Holdings SA is the issuer of the stablecoin Tether USD (USDT). Ardoino highlighted the company’s cooperative role by stating that they act according to the laws of each country when working with agencies like the Department of Justice and the FBI to support investigations.

Ongoing Efforts to Combat Illegal Gambling and Corruption

In addition to the cryptocurrency-related crackdown, Turkey recently intensified its fight against illegal sports gambling and related corruption. This campaign resulted in the apprehension of at least 20 individuals suspected of manipulating sports outcomes to affect betting markets.