‘Crypto crime’ suspect on bail
A MAN has been released on bail totalling 1 million TL after he was accused of breaking banking and finance laws.
Gifa Holding Ltd director Yusuf Kısa was released on bail pending trial on Tuesday on charges of “illegal activity regarding banks and financial institutions” in connection with his businesses Gifa Holding and Grandex Finans.
During the bail hearing held at Lefkoşa District Court, police officer Tümer Koç, who works in Lefkoşa Police Department’s financial division, stated that on March 31, 2021, a person filed a complaint with the Financial Crimes Department that he had purchased “GIFX” crypto currency from Gifa Holding Ltd and Grandex Finance Ltd but that the digital currency could not be converted into cash, exchanged for other currencies or used to buy things.
He said that based on the complaint, the TRNC Central Bank was contacted and the “necessary investigations were made”.
Officer Koç explained that the report prepared by the Central Bank stated that the businesses belonging to Mr Kısa gave credit or loaned money through the websites www.grandexfinance.com and www.gifatoken.com and gave “wallets” through foreign
payment system institutions and fund collection through banks. It stated that they aimed to provide an official bank account along with a bank card to carry out banking transactions, the court heard. People would then buy GIFX and other crypto assets with these funds and that there were “statements about all these transactions” in a newspaper owned by Mr Kısa.
Officer Koç said the report stated that the suspect had no “licence or operating permit issued by the Central Bank” and that “giving the impression that they can carry out transactions that a bank or financial institution can do violates the Prevention of Usury through Financial Leasing Factoring and Financing Companies Law, the Bank Cards and Credit Cards Law and the Banking Law”.
He added that Mr Kısa had rejected the accusations and refused to sign a written notification of the charges against him.
Stating that the portion of the investigation that the “suspect could influence” has been completed and that the “crimes are within the scope of the Assize Court”, Officer Koç requested that Mr Kısa be released on bail.
Judge Temay Sağer banned Mr Kısa from going abroad until his case is heard, and ordered him to be released on bail pending trial on the conditions that he deposits a 50,000TL cash bond, one guarantor signs a personal surety for 750,000TL and another guarantor signs a surety for 200,000TL.
Judge Sağer also ordered that the two companies in question suspend their activities while they make the necessary “legal arrangements” to comply with the law. If this is not done within 45 days, then “all their activities will be stopped until they do so” the judge warned.
Mr Kısa’s defence lawyer, Ünver Bedevi, stated that they will “resolve the illegal activities found by the Central Bank”.