Owner of Turkish Cryptocurrency Exchange Arrested

Bitexen owner Kemal Cenk Erdem was arrested on charges of “concealing the illegitimate source of assets derived from crime” as part of an investigation conducted by the Istanbul Chief Public Prosecutor’s Office.

The arrest warrant issued for Erdem, who was detained as part of the investigation, cited findings regarding financial connections and money transfers between the companies. The judge, after evaluating the existing financial records, company connections, and statements in the file, concluded that there were strong indications of guilt against Erdem.

The court ruling stated that Kemal Cenk Erdem was not listed as a direct shareholder, board member, or authorized representative in Dinamik Elektronik Para ve Ödeme Hizmetleri A.Ş. in the company’s commercial registry. However, it noted that he is the husband of Ayşin Erdem, the company’s founder, long-time sole shareholder, and controlling partner; and that he has partnerships and company connections with Bitexen Kripto Varlık Alım Satım Platformu A.Ş., Evenpal Teknoloji A.Ş., and KCE Finansal Teknoloji Yatırımları A.Ş.

The ruling stated that financial transactions linked to Bitexen and Kemal Cenk Erdem were identified within the capital sources of DinamikPay and Dinamik Yatırım. It was also noted that there were two-way financial transactions totaling nearly 100 million Turkish Lira between Ayşin Erdem and Kemal Cenk Erdem.

The court ruled that the evidence obtained warranted a detailed investigation into Kemal Cenk Erdem for facilitating the transfer of money believed to be connected to illegal gambling and for money laundering offenses.

Kemal Cenk Erdem, in his defense at the court hearing, denied the accusations. Erdem stated, “I have had no commercial dealings with the company in question, nor with the company of which I am the chairman of the board. I request to be released.”

The court decided to arrest Kemal Cenk Erdem, citing strong suspicion of guilt, concrete evidence of a flight risk, the fact that evidence has not yet been fully collected, and the assessment that judicial control measures would be insufficient.

*This is not investment advice.