Illegal Gambling Puts Crypto Under Pressure in Turkey

Turkey has carried out its largest-ever enforcement action targeting the intersection of crypto assets and illegal gambling, seizing approximately €470 million worth of digital assets allegedly used to launder proceeds from unlicensed betting operations. The move marks a major escalation in Ankara’s fight against offshore gambling networks and signals a tougher stance on crypto-based financial crime.

The seizure follows the arrest of Veysel Sahin, a businessman accused of running a vast network of illegal online betting platforms supported by offshore payment systems and cryptocurrency wallets. Details of the arrest and subsequent asset freeze were initially reported by Bloomberg, highlighting the scale of Turkey’s intensifying campaign against illegal gambling and broader financial misconduct.

Political Backdrop Driving Enforcement

The latest operation unfolds against a clearly defined political backdrop. Toward the end of 2025, President Recep Tayyip Erdogan instructed all relevant Turkish authorities to significantly step up action against illegal gambling. The directive was framed as part of a wider commitment to eradicate illicit betting activity ahead of Turkey’s next general election.

Since then, enforcement has expanded rapidly, evolving into a coordinated, multi-agency crackdown. Turkish authorities have expanded their focus beyond operators to include gambling advertising, payment intermediaries, fintech platforms, and crypto settlement channels, reflecting a more comprehensive, systematic approach.

Crypto and Stablecoins Under the Spotlight

According to prosecutors, investigators traced extensive financial flows linking unlicensed online betting platforms to crypto-assets. Stablecoins were allegedly used at scale to move, obscure, and store proceeds from illegal gambling activities. The size of the latest seizure underscores a decisive shift in Turkey’s enforcement strategy, with crypto transactions now firmly at the center of financial crime investigations.

Authorities argue that digital assets have increasingly become the preferred settlement layer for offshore betting operators targeting Turkish consumers. The use of crypto, particularly stablecoins, has allowed these networks to bypass traditional banking controls while maintaining high transaction volumes.

MASAK’s Expanding Role in Financial Oversight

A central institution in this crackdown is MASAK, Turkey’s Financial Crimes Investigation Board. MASAK has effectively been positioned as a gatekeeper of the country’s financial system, with expanded authority to verify and assess individual transactions across high-risk sectors, including fintech, insurance, and online gambling.

By supplying financial intelligence to prosecutors, MASAK plays a critical role in supporting asset-freezing orders and criminal proceedings. Officials indicate that the agency’s enhanced mandate is designed to close regulatory gaps and improve Turkey’s ability to detect and disrupt complex financial networks that rely on cross-border and crypto-based mechanisms.

Tether Cooperation Highlights Global Compliance Dynamics

The frozen assets were held in wallets linked to Tether Holdings SA, the issuer of the USDT stablecoin. Tether confirmed that it acted in response to law enforcement requests and in accordance with domestic legal requirements. The cooperation is notable given USDT’s widespread use in Turkey, where it plays a significant role in trading activity and informal settlement among Turkish nationals.

Current estimates suggest that USDT transactions in Turkey circulate at around 185 billion tokens, carrying an implied local market value of approximately ₺8 trillion, or roughly €150 billion at current exchange rates. This scale has made stablecoins both an essential financial tool and a focal point for regulators concerned about money laundering risks.

Industry Perspective on the Seizure

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 emphasized that Tether’s actions reflect established compliance practices rather than an isolated response:

“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.”

Broader Crackdown on Media and Promotion

Turkey’s zero-tolerance approach has extended beyond financial channels to media and marketing platforms. In a separate, high-profile case, television producer and businessman Acun Ilıcalı, who also owns Hull City FC, has been indicted over the broadcast of illegal betting advertisements on Turkish television. The case underscores Ankara’s determination to target not just gambling operators, but also those facilitating visibility and consumer reach.

Limits of Enforcement and Offshore Resilience

Despite the intensifying pressure, experts caution that the offshore gambling market remains structurally resilient. Yautodzyeva noted:

“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 similar dynamics are visible even in highly regulated markets:

“Even in highly regulated jurisdictions like Germany or Norway, channelisation is limited, as sanctions never remove offshore demand. Offshore operators adapt, redesign their image and keep operating.”