The Turkish government has uncovered a cryptocurrency Ponzi scam that was worth $1 billion.
Authorities in Turkey have broken up a criminal ring that was allegedly involved in a crypto Ponzi scam. The group allegedly promised great profits to invest $1 billion from naive people.
Together, the Turkish government’s crackdown on the fraudulent cryptocurrency investment scam resulted in the arrest of 127 people and the seizure of 238 assets with a combined value of more than $31 million.
The authorities in Beijing cracked a case involving a well-planned crypto-pyramid scam last month. In a twist of fate, Xie, the complaint, became the main suspect. In an effort to amass wealth quickly, Xie put the funds into cryptocurrencies via an entity known as “Hua.” In the end, he became the scheme’s central figure after recruiting 300 people over nine tiers.
The Federal Bureau of Investigations reported a 53% increase, reaching $3.94 billion, in losses caused by bitcoin scams in 2023. Investment fraud increased to $4.57 billion, according to the FBI’s 2023 Internet Crime Report. A significant amount of this sum is attributable to cryptocurrency frauds. “The report said:”
The use of custodial accounts maintained by banks for cryptocurrency exchanges or third-party payment processors, or the direct transfer of assets from unsuspecting users to these platforms, allows fraudsters to swiftly disseminate their stolen funds,
Separately, Reuters said that Turkey is planning to impose a transaction fee on trading stocks and cryptocurrency.
After years of instability that contributed to rising inflation, “Finance Minister Mehmet Simsek is pushing through tighter measures to promote fiscal discipline and price stability,” according to Reuters.
Recently, Simsek hinted that the government would implement a minimal corporation tax in order to create a more fair tax system. The governing party of President Tayyip Erdogan has also introduced a measure that would mandate registration and license for businesses that deal in digital assets.
Concerns about investor safety and financial stability have increased in recent years, and this action by Turkey shows that the country is serious about regulating the cryptocurrency industry.
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