As crypto assets continue to expand globally, they have also attracted significant interest in Turkey. Yet, this growth has brought along various fraud schemes. Most of these offenses are committed through information systems and are considered aggravated fraud under Article 158 of the Turkish Penal Code (TCC).

Legal Status of Crypto Assets

Although the use of crypto assets as a means of payment is prohibited in Turkey, they are increasingly regarded as part of property due to their measurable economic value. Both the Constitutional Court and the Court of Cassation have adopted a broad interpretation of property rights, which supports the view that crypto assets should be legally protected against fraud.

Methods of Crypto Asset Fraud

• Ponzi Schemes: A fraudulent system where payments to existing investors are made with funds from new participants. Such schemes are unsustainable and often collapse, as seen in the infamous Thodex and Vebitcoin cases in Turkey.

• Cryptojacking: The unauthorized use of a victim’s computer power for hidden crypto mining. This method, carried out through malware or browser-based scripts, not only compromises device security but also increases electricity costs.

• Phishing (Smishing, Vishing): Fake crypto exchange websites or applications trick users into sharing login credentials. Once obtained, fraudsters gain access to real accounts and cause financial losses.

• Ransomware: Malicious software that locks access to devices or data and demands ransom in crypto assets. In many cases, hijacked social media accounts are also used to solicit crypto transfers from victims’ contacts.

• Scam Coins: Fraudsters launch worthless coins, artificially inflate their prices through hype and advertising, and then sell them to unsuspecting investors. Such schemes often result in significant financial losses.

Legal Consequences

Under TCC Article 158, perpetrators of crypto asset fraud may face 3 to 10 years of imprisonment and up to 5,000 days of judicial fines. If the offense is committed through mass media or within an organized group, penalties are further increased.

Conclusion

The crypto market offers attractive opportunities but also poses major fraud risks. While Turkish criminal law already addresses such offenses, the rapid pace of technological innovation may soon require more tailored legal regulations. For now, the most effective safeguard remains investor awareness and the use of reliable trading platforms.