- Turkish authorities have busted a $1 billion cryptocurrency Ponzi scheme.
- FBI reports a 53% surge in cryptocurrency scam losses in 2023 to $3.94 billion.
- Turkey plans transaction tax on stocks and crypto assets to boost fiscal discipline.
Turkish law enforcement successfully dismantled a criminal organization accused of running an illegal cryptocurrency Ponzi scheme. The gang reportedly convinced unsuspecting citizens to invest a combined $1 billion, promising high returns.
In a coordinated crackdown, Turkish authorities arrested 127 individuals linked to the fake crypto investment scheme and seized 238 assets worth over $31 million.
Last month, Beijing’s police solved a case involving an organized crypto-pyramid scheme. The complainant, Xie, ironically emerged as the prime suspect. Seeking rapid financial gains, Xie invested in cryptocurrency through an organization called ‘Hua.’ He eventually recruited over 300 individuals across nine levels and became the scheme’s lead figure.
Losses from cryptocurrency scams rose by 53% in 2023, totaling $3.94 billion, according to the FBI. The FBI’s Internet Crime Report 2023 indicates a broader increase in investment fraud, reaching $4.57 billion. Cryptocurrency scams comprise a substantial portion of this total. The report said:
“Fraudsters are increasingly using custodial accounts held at financial institutions for cryptocurrency exchanges or third-party payment processors, or having targeted individuals send funds directly to these platforms where funds are quickly dispersed,”
In a separate development, Reuters reported that Turkey is set to implement a transaction tax on stock and crypto asset trades.
“The move is part of tightening measures that Finance Minister Mehmet Simsek is pushing through to boost fiscal discipline and price stability after years of turmoil that fueled soaring inflation,” Reuters stated.
Simsek recently signaled the government’s intent to introduce a minimum corporate tax to ensure a more equitable tax framework. Meanwhile, President Tayyip Erdogan’s ruling party submitted a bill proposing licensing and registration requirements for providers of crypto asset services. This move underscores Turkey’s commitment to regulating the crypto sector in lieu of the growing concerns of investor protection and financial stability.
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