Bitrabo Editorial
In Ankara, authorities carried out a significant operation against a crypto scam operation, uncovering an alleged Ponzi scheme that has siphoned off more than $1 billion over recent years, as disclosed by Turkey’s Minister of Interior.
Uncovering the Crypto Ponzi Scam
The interior minister of Turkey, Ali Yerlikaya, declared the detainment of over 100 suspects in a crypto operation dubbed “CYBERGÖZ-42” in Ankara. The operation unearthed Smart Trade Coin STC’s deceptive practices within the country.
The deceitful crypto trading platform lured investors with promises of “guaranteed high returns with no risk.” Investors were assured their funds were secure using the platform’s “Stop loss” feature and “advanced trading bots” that would autonomously engage in trading on their behalf.
The investigation exposed the platform as a conventional Ponzi scheme that illicitly amassed over $1 billion, equivalent to 32 billion Turkish Lira, from unsuspecting users. Existing investors were enticed to bring in new clients to receive profits, sustaining the fraudulent cycle.
Turkish authorities apprehended 127 individuals from 21 provinces in Ankara, charging them with offenses including “international fraud through Ponzi schemes” and “money laundering from criminal proceeds.”
Throughout the operation, authorities confiscated over 177 real estate properties and 61 personal belongings, valued at 1 billion Turkish Lira. Moreover, they seized an unauthorized firearm, a blank gun, and various crypto possessions.
History of Smart Trade Coin’s Deception
Smart Trade Coin has been under suspicion as a fraudulent entity since 2021, with Turkish investors voicing their grievances and condemning the company’s actions over time, as reported by local media.
Reports from the Kocaeli Newspaper detailed numerous legal complaints filed against the crypto trading platform. In 2021, a group of 50 individuals protested in front of the Ankara Courthouse against Smart Trade Coin and its operatives.
According to Yagiz Kaya, the lawyer representing the victims, over 50,000 people fell victim to the company’s scams in Turkey, alleging an approximate loss of $2 billion in investors’ funds, with no redress despite multiple complaints lodged.
Several victim testimonies recounted being coerced into acquiring loans and selling off assets to earn a promised “36 percent monthly profit,” only to find themselves empty-handed and indebted.
In 2023, AI Multiple Research disclosed a study indicating the likelihood of Smart Trade Coin being a fraudulent scheme, advising customers against investing in the platform.
Head analyst Cem Dilmegani highlighted the impracticality of the company’s claims, suggesting that the platform’s offerings were indicative of deceitful practices and misinformation, signaling its fraudulent nature.