Major Operation
On Thursday, Turkey’s Minister of Interior announced a major operation against a crypto scamming platform in Ankara. The operation, codenamed “CYBERGÖZ-42,” targeted the Smart Trade Coin (STC) platform.
Ponzi Scheme Exposed
The investigation revealed that STC was a Ponzi scheme that promised investors high profits with no risk. The platform claimed to use advanced trading bots to automatically buy and sell cryptocurrencies, but in reality, it was simply stealing users’ money.
Over $1 Billion Stolen
Over the past few years, STC has stolen an estimated $1 billion (32 billion Turkish Lira) from investors. Existing investors were encouraged to recruit new customers to keep the scheme running.
127 Suspects Arrested
Authorities conducted raids in 21 provinces of Ankara, arresting 127 suspects for international fraud and money laundering. They also seized over 177 immovable assets, 61 movable assets, and several crypto assets.
History of Scams
STC has been suspected of being a scam since 2021, with numerous complaints and protests from investors. Victims reported being encouraged to take loans and sell their assets to invest in the platform, only to end up losing their money.
Warning Signs
Experts had warned investors about STC’s unrealistic claims and opaque business practices. They pointed out that the company’s promise of consistent earnings through arbitrage was highly unlikely.
Scam Signals
Analysts highlighted the following signals that STC was a scam:
- Unrealistic profit claims
- Deceptive marketing
- Lack of transparency
- Encouragement to recruit new investors
