Authorities in Turkey have seized around €470m in crypto assets alleged to have been used to launder proceeds from illegal gambling, marking the largest enforcement action undertaken in crypto and gambling.
The seizure follows the arrest of Veysel Sahin, a businessman accused of operating a sprawling network of illegal betting services supported by offshore payment schemes and crypto wallets. The initial arrest and asset freeze were first reported by Bloomberg, detailing Turkey’s intensifying campaign against illegal gambling and wider financial crime.
The enforcement action unfolds within a clear political context. Toward the end of 2025, President Recep Tayyip Erdogan ordered all Turkish authorities to escalate action against illegal gambling, pledging to eradicate illicit betting activity ahead of Turkey’s next general election.
The directive has since driven a coordinated, multi-agency crackdown spanning gambling advertising, payment services, fintech platforms and, increasingly, crypto settlement channels.
According to prosecutors, investigators uncovered extensive financial trails linking unlicensed online betting operations to crypto-assets, with stablecoins allegedly used to move and conceal proceeds at scale. The latest seizure represents a further escalation, as Turkey’s enforcement strategy further pivots to uncover crypto-based transactions.
The arrest reflects growing concern that digital assets have become the preferred settlement layer for offshore operators targeting Turkish consumers.
A central role in this effort has been assumed by MASAK, which has been authorised as a gatekeeper of Turkey’s financial system. MASAK is now responsible for verifying and assessing individual transactions across high-risk sectors including fintech, insurance and online gambling, providing the financial intelligence that underpins prosecutorial actions and asset-freezing orders.
The frozen funds were held in wallets linked to Tether Holdings SA, issuer of the USDT stablecoin. Tether confirmed it acted in response to law-enforcement requests and in compliance with domestic legal requirements.
The cooperation with Tether is notable given USDT’s scale in Turkey, where the stablecoin is widely used for trading and informal settlement by Turkish nationals. At present, it is estimated that Turkey USDT transaction circulate at 185 billion tokens carrying an implied local market value of circa ₺8 trillion (approximately €150bn at current exchange rates).
Placing the seizure in context, Stasya Yautodzyeva, Head of Analytics at advisory firm 4H Agency, said: “The freeze of circa $550m in illicit money by Tether in consultation with Turkish authorities forms part of a wider escalation of the Turkish stance on offshore gambling. With stricter supervision of advertising, payments and fintech platforms, the state is increasingly venturing into crypto-based settlement channels, signalling a more mature and internationally coordinated enforcement strategy.”
Yautodzyeva noted that Tether’s involvement reflects an established compliance approach rather than an exceptional case: “It shall be noted, that for Tether this cooperation is not unique. The issuer has a history of collaborating with local law-enforcement agencies of national jurisdictions to freeze dirty money inside and outside of jurisdictions and to strengthen anti-money laundering (AML) compliance which is critical to ensuring the trust level of a global crypto payments platform will be maintained.”
Turkey’s crackdown has also extended beyond operators to media and marketing channels. In a separate high-profile case, television producer and businessman Acun Ilıcalı, owner of Hull City FC, has been indicted over the broadcast of illegal betting advertisements on Turkish television, underlining Ankara’s zero-tolerance approach to gambling promotion.
However, Yautodzyeva cautioned that despite intensifying pressure, the offshore market remains structurally resilient: “For Turkey, the response raises operational risks for offshore businesses, particularly those using stablecoins to bypass banking controls. However, the broader impact remains uncertain. Offshore gambling is structurally resilient: enforcement increases costs and friction, but rarely removes supply.”
She added that even highly regulated jurisdictions face similar challenges: “Even in highly regulated markets like Germany or Norway, channelisation is limited, as sanctions never remove offshore demand. Offshore operators adapt, redesign their image and keep operating.”
Looking ahead, Turkish authorities have indicated that the next phase of enforcement, coordinated by MASAK, will focus on cross-border facilitators. Increased scrutiny is expected to fall on neighbouring jurisdictions including North Macedonia, Armenia, Georgia and Cyprus, which Ankara believes have been used as operational or financial hubs for illegal betting networks.
“In this context, Turkey’s measures are effective means of boosting pressure but are unlikely to dismantle the offshore market,” Yautodzyeva concluded. “Without competitive legal alternatives, enforcement will limit visibility without eliminating offshore activity.”
