Turkish User’s Assets on Cryptocurrency Exchange Seized: Here’s the Legal Background

Today, the X cryptocurrency community was discussing the response from Binance TR (BN Teknoloji A.Ş.) to a letter sent by the Istanbul 23rd Enforcement Office regarding an attachment notice under Article 89/1 concerning a debtor.

According to the shared images, as a result of the investigation conducted within the scope of the file, the debtor’s account status and current assets on the platform were reported to the enforcement office. The enforcement office inquired whether the debtor had an account on Binance TR and, if so, whether the assets in that account could be seized.

In its response to the enforcement file, Binance TR stated that the debtor had an account on the platform containing small amounts of cryptocurrency and Turkish Lira (TL). According to the statement, the account held: 0.00572 AVAX, 0.858088 BUSD, 0.37495 ONT, 0.299 SLP, 0.82 TL, and 0.8660594 USDT. The company informed the enforcement office that these assets had been seized and that there were no other rights or claims on the account besides these.

However, Binance TR specifically stated that the seizure order does not apply to “future funds and assets that may be deposited into the account.” The company stated that, according to the law, they are a third party and their liability is limited only to the balance existing at the time the seizure order was received. Therefore, if money is deposited into the account in the future, it will not be automatically seized.

This incident has also brought back to the forefront the question of whether cryptocurrencies can be seized. Although cryptocurrencies are not officially considered “money” in Turkey, they are seen as an asset with economic value. Therefore, a debtor’s account on a cryptocurrency exchange can be subject to enforcement proceedings, just like a bank account.

In practice, enforcement offices send letters to cryptocurrency exchanges inquiring about the current balance in the debtor’s account. If there are assets in the account, a lien can be placed on that amount. However, the important point here is that the lien only applies to the current balance. Separate procedures are required for any funds subsequently deposited into the account.

*This is not investment advice.