Turkey Freezes $1B Worth of Crypto, Alleged to Be Tied to Gambling

Turkey has taken a dim view of cryptocurrencies and illegal gambling, seeing both as a way to undermine the national currency, skirt taxes, and weaken the economy.

This has led to a multi-agency effort to stamp out gambling-related and money laundering crime, which is now paying off with Istanbul’s Chief Public Prosecutor confirming that more than $500 million has been seized in assets belonging to one of two key suspects, Veysel Sahin.

Assets Seized, Law Enforcement and Private Companies Work Together

Law enforcement was able to seize the assets on January 30, leading to the arrest of another individual and the seizure of a similar sum of money – $500 million. 

The other suspect was not named by the investigators, but he is also allegedly part of the same organization that is accused of running illegal gambling operations and using cryptocurrency to launder the ill-gotten proceeds. 

Yet, the operation is not the government’s complete own doing. Authorities have worked with a private company, Tether Holdings SA, which has helped enact the asset seizure. 

The company specializes in helping law enforcement execute multi-jurisdicitonal operations that can freeze the assets of people suspected of serious crime, such as drug trafficking, sanction evasion, money laundering, and more. 

Going After Cryptocurrency-Tied Crimes Across Jurisdictions Now a Possibility

Tether Holdings SA is the brainchild of Paolo Ardoino, its boss. The company is also the issuer of the stablecoin Tether USD (USDT).

Commenting on the recent bust, Ardoino said: “Law enforcement came to us, they provided some information, we looked at the information, and we acted in respect of the laws of the country. And that’s what we do when we work with the DOJ, when we work with the FBI, you name it.” 

Turkey recently carried out another crackdown against illegal sports gambling, and specifically, corruption in sports, leading to the arrest of at least 20 suspects who are alleged to have interfered in game outcomes to influence betting markets.