Cryptocurrency Fraud

Cryptocurrency Fraud

Recently, the issue of cryptocurrency fraud has been quite prominent. Victims of fraud are confused about which legal remedies they should pursue.

Virtual currencies like Bitcoin have no geographical boundaries, yet there is no clear regulation regarding their jurisdiction. Due to the lack of a clear legal framework, the methods to be pursued are quite limited. In our country, there is no regulation governing platforms that buy and sell cryptocurrencies. Although this is a reason why virtual currencies are preferred by the public, their exclusion from protective measures by official banks and institutions also leads to the facilitation of economic crimes.

The crime of Laundering Assets Derived from Offenses, regulated under Article 282 of the Turkish Penal Code, is a very significant provision in this regard. It becomes possible for these currencies, which are traded in exchange for Bitcoin, to be involved in various crimes, money laundering, or fraudulent transactions. Another aspect is what legal methods cryptocurrency victims, whose numbers have increased recently, should follow. Cryptocurrency victims have the right to seek legal remedies based on general legal principles regarding the fraud they have experienced.

Cryptocurrency victims can apply to the Chief Public Prosecutor's Offices and demand the recovery of their losses from the company owners, as well as their prosecution. Another legal method is to claim their rights by resorting to the relevant provisions of the Turkish Code of Obligations and the Turkish Commercial Code. Furthermore, Consumer Arbitration Committees and Consumer Courts are the judicial bodies that should be approached in this regard.

Lawyer Aylin Esra EREN