Turkish authorities crack down on cryptocurrency pyramid scheme
Turkish law enforcement authorities have conducted a large-scale operation against the organizers of the cryptocurrency pyramid scheme Smart Trade Coin (STC), resulting in the detention of 127 individuals. The creators of Smart Trade Coin promised investors high profits and a complete lack of risks. They advertised the platform as a secure investment opportunity, promising a guaranteed stop-loss function and the use of advanced trading bots for automatic transactions. The scammers persuaded people to take out loans and buy crypto assets, promising them significant monthly profits that they could not deliver.
AI Multiple Research labels Smart Trade Coin a fraudulent project
The analytical company AI Multiple Research named Smart Trade Coin a fraudulent project in 2023 due to lack of transparency and questionable business practices. Since 2021, the Turkish police have received numerous complaints from investors who lost money as a result of this project.
Investigation reveals Smart Trade Coin as a cryptocurrency pyramid scheme
The investigation revealed that Smart Trade Coin was a cryptocurrency pyramid scheme. Under the scheme, new investors were attracted with promises of high profits, which were essentially paid out of the investments of previous participants. Police conducted searches in 21 locations in Ankara, seizing a multitude of assets worth 1 billion Turkish liras (approximately $31 million), including real estate, personal property, unlicensed firearms, and cryptocurrency. The detainees are suspected of international fraud and money laundering.
Turkish government takes steps to regulate cryptocurrencies
This case underscores the need for thorough control and regulation of cryptocurrency assets. At the end of last year, the Turkish government announced its intention to develop new rules for regulating cryptocurrencies to address deficiencies in current legislation and remove the country from the Financial Action Task Force’s (FATF) «grey list.»
