Turkish Authorities Detain 127 Suspects in Crypto Scam Bust

Turkish authorities, led by Minister of Interior Ali Yerlikaya, have conducted a significant operation against a crypto scamming platform in Ankara. Dubbed "Operation CYBERGÖZ-42," the crackdown targeted Smart Trade Coin STC's fraudulent activities, resulting in the detention of over 100 suspects.

Smart Trade Coin Exposed: From Promised Profits to Ponzi Scheme

Smart Trade Coin purportedly offered investors high profits with minimal risk through its crypto trading platform. The company claimed to utilize advanced trading bots and a "Stop loss" function to ensure the safety of investments. However, investigations revealed it operated as a classic Ponzi scheme, duping users out of over $1 billion.

The scheme involved enticing existing investors to recruit new participants, whose funds were then used to sustain the fraudulent operation. Turkish authorities identified 127 suspects involved in "international fraud by creating a Ponzi scheme" and money laundering.

During the operation, authorities confiscated significant assets, including 177 immovable properties, 61 movable assets, and various crypto assets, totaling 1 billion Turkish Lira. Additionally, they seized unlicensed firearms.

Smart Trade Coin: Long Suspicions Confirmed in Turkish Crackdown

Smart Trade Coin has long been suspected of fraudulent activities, with numerous complaints filed against it since 2021. Despite protests and legal actions, the company continued its operations, allegedly scamming over 50,000 Turkish investors.

AI Multiple Research flagged Smart Trade Coin as a potential scam in 2023, citing unrealistic profit claims and opaque business practices. Head analyst Cem Dilmegani emphasized the implausibility of the company's arbitrage claims and highlighted its lack of transparency.

The crackdown on Smart Trade Coin underscores the Turkish government's commitment to combatting crypto scams. Despite warnings and protests from investors, the company continued to operate unchecked until now.

The coordinated effort by Turkish authorities to dismantle the Smart Trade Coin Ponzi scheme demonstrates a proactive stance against crypto fraud. However, the case also highlights the challenges of regulating the crypto industry and protecting investors from fraudulent schemes. Continued vigilance and regulatory measures are essential to safeguarding consumers in the evolving crypto landscape.