Large-scale Crypto Assets Fraud Case in Turkey: 127 Suspects Arrested, Losses Could Exceed $2 Billion

Recently, Turkey's Crypto Assets industry has been exposed to a significant fraud case. On May 30, Turkey's Interior Minister announced that authorities launched a large-scale operation in Ankara against a suspicious Crypto Assets project, detaining 127 suspects and seizing a large amount of assets and several firearms.

The project involved in this case is named Smart Trade Coin (STC). It is reported that since 2021, numerous Turkish investors have expressed doubts and dissatisfaction with the operation of this project. A lawyer for the victims claims that the project is suspected of deceiving about 50,000 users, resulting in losses that may exceed $2 billion.

STC claims to offer software that connects multiple Crypto Assets exchanges, allowing users to manage multiple exchange accounts through a single interface and set up automated trading bots for arbitrage trading. However, multiple analyses indicate that these promises are likely false.

An industry analyst pointed out multiple times in a research article published in 2023 that STC is very likely a Crypto Assets scam. Many users have reported in comments on major app stores that they lost up to 95% of their investments. Even more alarming, some claimed they were induced to take out loans or sell properties and vehicles in exchange for a promise of "36% profit per month," only to suffer significant losses in the end.

Through blockchain analysis tools, it is possible to trace some addresses suspected of being used to transfer stolen funds. These addresses have conducted a large number of one-way ETH outflow transactions, involving a significant amount of funds, close to the estimated loss amount. After multiple layers of transfer, aggregation, and dispersion, these funds ultimately flowed into major exchanges.

This case has sparked widespread discussion in Turkish society regarding the regulation of Crypto Assets. Many believe that merely pursuing freedom in Crypto Assets is not enough; a robust regulatory framework must be established. Only in a compliant and transparent environment can the Crypto Assets industry truly gain public trust and adoption.

In the future, the Turkish government and the Crypto Assets industry need to work together to seek a balance between protecting investors' rights, preventing financial risks, and promoting innovative development. Only by adhering to compliant operations can Crypto Assets become an effective tool for driving economic freedom and value preservation.