Turkish Authorities Uncover $1 Billion Scam
In a serious effort to combat crypto fraud, Turkey’s Interior Minister, Ali Yerlikaya, on X announced the detention of more than 100 suspects connected with a gigantic crypto Ponzi scheme.
Dubbed “CYBERGÖZ-42,” the operation targeted fraudulent activities of Smart Trade Coin in Ankara.
According to the statement by Yerlikaya, Smart Trade Coin asked its investors to entrust their “high profits with no risk.” In that respect, the team behind the platform argued that their “Stop loss” function and “advanced trading bots” would keep the investments safe and execute the transaction automatically.
However, the investigation showed that STC was a classic Ponzi scheme, siphoning over $1 billion (32 billion Turkish Lira) from users. Existing investors were encouraged to bring in new members, using the fresh funds to keep the scam going.
A Number of Arrests Made
During the crackdown, Turkish police detained 127 suspects in 21 provinces in Ankara. Detainees were charged with “international fraud by creating a Ponzi scheme” and “crime and laundering of assets obtained from crime.”
In the raid, the police seized 177 immovable assets and 61 movable assets, worth 1 billion Turkish Lira. They also confiscated an unlicensed gun, a blank firearm, and several crypto assets.
A History of Deception
Smart Trade Coin’s dubious activities are not new. Turkish investors have been railing against the company and filing several complaints since 2021.
Furthermore local media, such as the Kocaeli Newspaper, reported on the dozens of criminal complaints. In 2021, 50 people gathered in front of Ankara Courthouse to protest against STC.
Lawyer Yagiz Kaya, who represents the victims, disclosed that over 50,000 people had been duped out of an estimated $2 billion. Even so, no further action was taken until recently. Many of the victims were conned into taking loans and selling assets to be able to invest and ended up in debt.
Expert Warnings Ignored
AI Multiple Research carried out a study into Smart Trade Coin in 2023 and found it likely to be a scam. Moreover the website, which is no longer active, was offering software that was supposed to manage several crypto exchange accounts simultaneously.
Head Analyst Cem Dilmegani criticized the promises of incredible returns as highly unrealistic.If such arbitrage technology had actually existed, he said, it would seek large-scale arbitrage opportunities, not individual investors.
Moving On
Nevertheless the takedown of this crypto Ponzi scheme highlights the dangers that continue to lurk in the world of digital currencies. Investors will have to remain vigilant and skeptical of platforms that offer sure-shot returns.
As the case develops, it will serve to remind people of the due diligence and caution required in the extremely volatile world of cryptocurrencies.
