New York Status Conference in Halkbank Case Postponed

Summary:

A status conference scheduled to take place in New York on January 27 in the criminal case against Türkiye’s state-owned Halkbank has been postponed, according to court notifications. The meeting was expected to review the current status of the case and outline the next procedural steps. No official reason was given for the delay.

Court Meeting on Case Trajectory Delayed

A U.S. federal court has postponed a status conference in the criminal case against Halkbank that was set to be held on January 27 in New York.

The meeting was expected to address the current standing of the case, including discussions on procedural issues and a potential trial schedule. Court filings did not provide an explanation for the postponement, and no new date has yet been announced.

Allegations of Sanctions Evasion

U.S. prosecutors accuse Halkbank of participating in a scheme to evade U.S. sanctions on Iran, alleging that the bank helped secretly transfer approximately $20 billion in restricted Iranian funds through money service businesses and front companies operating in Türkiye, Iran, and the United Arab Emirates.

According to the indictment, Iranian oil revenues were converted into gold and cash, and transactions were allegedly disguised as legitimate food trade through the use of falsified shipping documents. Halkbank has denied all allegations.

Case Strained U.S.–Türkiye Relations

The case was filed in 2019, during former President Donald Trump’s first term in office, and became a major source of diplomatic tension between Washington and Ankara.

President Recep Tayyip Erdoğan has repeatedly criticized the prosecution, previously describing it as an unlawful and politically motivated action.

Immunity Defense Rejected by U.S. Courts

Halkbank sought to dismiss the case by arguing that it was protected by sovereign immunity and therefore could not be prosecuted in U.S. courts.

However, in October 2024, the U.S. Court of Appeals for the Second Circuit rejected that argument, ruling that Halkbank could be tried in a U.S. criminal court.

The bank subsequently appealed to the U.S. Supreme Court, but on October 6, 2025, the court declined to hear the case, leaving the lower court ruling in place.

Erdoğan Cites Trump Assurances

Following a visit to Azerbaijan, President Erdoğan told journalists that both in face-to-face meetings at the White House and in phone calls, Donald Trump had told him that “the Halkbank issue is finished for us.”

Erdoğan described the statement as an important political signal but acknowledged that procedural steps remain unresolved, adding that Türkiye hopes the process will be concluded positively and without further delay.

The Halkbank case reached a legal dead-end in late 2025 after the U.S. Supreme Court declined to hear the bank’s final appeal regarding “sovereign immunity.” This decision solidifies the ruling that Halkbank’s actions were commercial in nature, stripping it of legal protection and clearing the path for a criminal trial in Manhattan.

With the legal hurdles cleared, the focus has shifted to the Trump-Erdogan relationship. While President Trump has historically expressed a desire to resolve the issue politically, analysts in the Western press suggest that the Department of Justice (DOJ) may resist dismissing a federal case of this magnitude involving a $20 billion sanctions-evasion scheme.

Rumors of a $100 million settlement have circulated, but U.S. prosecutors are reportedly holding out for a multi-billion dollar fine and a formal admission of guilt. As 2026 begins, the Turkish banking sector remains on edge; a full trial could expose sensitive evidence and result in systemic financial penalties.