Authorities Freeze €460M in Cryptocurrency Linked to Illegal Gambling; Repatriation Efforts Underway
Istanbul prosecutors have frozen roughly €460 million in cryptocurrency connected to an illegal gambling investigation centered on suspect Veysel Şahin. Financial analysis by Turkey’s anti-money-laundering unit (MASAK) identified proceeds allegedly derived from criminal betting operations and infrastructure support. The Istanbul Chief Public Prosecutor’s Office expanded the probe to include violations of Law 7258 and money laundering, seizing moveable and immovable assets, company and partnership shares, and bank and exchange accounts. Magistrates approved seizure requests to block asset transfers. The €460 million was frozen by global firms holding the accounts abroad; Turkish authorities say legal and technical steps are ongoing to repatriate those crypto assets through international cooperation. Prosecutors stressed that cryptocurrencies are being actively tracked as part of broader efforts to combat financial crimes. Keywords: cryptocurrency freeze, illegal gambling, money laundering, asset seizure, MASAK, international cooperation.
Bearish
A large-scale seizure and freeze of €460 million in cryptocurrency tied to alleged illegal gambling is likely to produce short-term bearish pressure across crypto markets, especially if the frozen assets are significant holdings on major exchanges. Immediate effects: increased sell-side pressure and heightened risk aversion among traders fearing additional regulatory enforcement or follow-up seizures; possible temporary liquidity strains for affected trading pairs on exchanges where those assets were held. Mid-to-long term: the direct market impact may fade if assets remain locked and no forced liquidations occur, but the event raises regulatory risk perception—particularly regarding AML enforcement and cross-border cooperation—which can dampen investor sentiment and slow inflows. Historical parallels include high-profile exchange freezes and law-enforcement seizures (e.g., Silk Road/BTC seizures, Bitfinex/Tether-related probes) that triggered temporary price volatility and increased compliance focus. Traders should watch exchange notices, on-chain movement, and official updates about repatriation or court orders; avoid leveraged positions during heightened news flow and monitor liquidity in pairs likely impacted by large holdings.