Turkish prosecutors have accused 504 people of operating an alleged money laundering network that moved nearly 40 billion Turkish liras through shell companies, jewellery stores, payment providers and cryptocurrency transactions.
- Turkish prosecutors have charged 504 suspects in an alleged 40 billion lira money laundering network.
- Investigators said illegal betting proceeds were moved through shell companies, payment providers and cryptocurrency transactions.
- Prosecutors are seeking prison terms of up to 34.5 years for the alleged leaders of the network.
According to a 1,548-page indictment prepared by the Istanbul Chief Public Prosecutor’s Office, the suspects allegedly used shell companies, bank accounts, foreign exchange offices, point-of-sale terminals and crypto transfers to disguise proceeds generated from illegal betting operations.
Prosecutors alleged the network established a web of front companies that allowed betting revenues to enter the financial system before being routed through a proprietary digital accounting platform known as “M80.” The indictment stated that the system handled the movement and tracking of the group’s financial operations.
Investigators further alleged that part of the proceeds was converted into cryptocurrencies before being transferred abroad. The indictment also accused members of the network of attracting victims into fraudulent investment schemes by promising unusually high returns.
Turkish prosecutors are seeking prison sentences of up to 34.5 years for alleged ringleader Türker Ak and up to 31 years for alleged network manager Murat Dönmezoğlu.
Turkish authorities have increased their attention on crypto-related investigations. Last year in August, Ethereum core developer Federico Carrone, known online as Fede’s Intern, was detained for about 24 hours after the Turkish Ministry of Internal Affairs accused him of helping others misuse the Ethereum network.
Carrone denied any involvement in illegal activity, saying his work focused on academic research into privacy tools, and he was later released before returning to Europe.
Taken together, the recent investigations show regulators in several jurisdictions continuing to examine how cryptocurrencies are used in financial crime, with enforcement increasingly targeting laundering networks, cross-border fund movements and digital asset transactions linked to alleged criminal activity.
Crypto laundering remains under scrutiny
The case adds to a series of recent enforcement actions across the globe in which authorities have identified cryptocurrencies as one method used to move or conceal illicit funds rather than the underlying source of criminal activity.
Earlier this year, the People’s Bank of China said virtual currency laundering would remain one of its enforcement priorities as part of its next anti-money laundering strategy. Chinese authorities said criminal groups increasingly combine virtual currencies with cross-border fund transfers, underground banking networks and nominee accounts to make transactions harder to trace.
Ireland has also identified crypto assets as a “very significant” money laundering and terrorism financing risk in its latest National Risk Assessment. The country’s Department of Finance said it plans to introduce industry standards governing crypto-related sources of funds by the second half of 2027 while strengthening anti-money laundering controls across the financial sector.
