Turkey Eyewash Case: Involving billions of dollars, over a hundred suspects arrested

A significant eyewash case recently occurred in the Turkish encryption currency sector, drawing widespread attention from all sectors of society. This incident not only exposed the risks present in the current encryption currency market but also highlighted the urgency of establishing an effective regulatory framework.

On May 30, the Turkish Interior Minister announced that authorities launched a large-scale operation against an encryption currency eyewash project in Ankara. A total of 127 suspects were detained during this operation, and a large amount of assets and several firearms were seized.

The eyewash project is named Smart Trade Coin (STC) and has been controversial since 2021. It is reported that about 50,000 investors were deceived, with losses amounting to over $2 billion. This shocking figure reveals the enormous harm of such eyewash schemes.

STC claims to provide software that connects multiple cryptocurrency exchanges, allowing users to manage multiple exchange accounts through a single interface and set up automated trading bots. However, multiple analyses indicate that these promises are likely eyewash.

The chief analyst of a certain analysis platform has repeatedly pointed out in a research article that STC may be an eyewash. Many users have reported losing 95% of their savings and have been unable to verify whether these funds were embezzled by the STC team. About half of the reviews in the app store also accuse the application of being an eyewash.

Through blockchain analysis, professional institutions have identified several addresses suspected of being used to transfer stolen funds. The analysis shows that the STC token contract distributed a large amount of funds to a specific address, which conducted a large-scale one-way outflow of ETH transactions, with the amount involved being close to the estimated losses. These funds eventually flowed into major exchanges, some directly transferred in, while others entered after multiple layers of transfer.

As early as 2021, 50 people protested against STC and its team in front of the Ankara courthouse. Victim lawyers stated that despite multiple complaints, no substantial action was taken at the time. Some victims claimed to have been induced to take out loans or sell RVs, with promises of "36% monthly profit." However, most clients not only did not profit but also ended up heavily indebted.

Analysts point out that STC's promises are clearly unrealistic. If they could really develop a profitable arbitrage technology, they wouldn't be promoting it to retail investors, but would instead raise funds for large-scale operations. The company's opaque behavior, false marketing, and lack of information all indicate that this is a deliberately designed eyewash.

This incident has made Turkish society realize that merely pursuing freedom in cryptocurrency is far from enough; a sound regulatory system must be established. Only in a compliant and transparent environment can the cryptocurrency industry gain public trust.

In the future, the Turkish government and industry need to work together to seek a balance between protecting investors, preventing risks, and promoting innovation. Only by adhering to compliance can encryption truly become an effective tool for driving economic freedom and asset appreciation.