Seizure of Crypto Assets & Debt Enforcement Procedures in Turkey

Following recent legislative updates under Law No. 7518, whether digital assets like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) can be subject to debt execution is a major focus in Turkish enforcement law. Recent court decisions affirm that crypto assets are legally classified as "economic commodities/movables" and are fully subject to attachment and garnishment.

1. Legal Classification of Crypto Assets under Turkish Law

Under Article 85 of the Turkish Enforcement and Bankruptcy Code (EBC), any asset or claim belonging to a debtor having financial value can be attached. Although cryptocurrencies are intangible, they carry market value and trade volume, rendering them movable assets under Turkish civil procedure.

2. Enforcement Notices to Crypto Exchanges (EBC Art. 89)

Creditor attorneys can request Turkish Enforcement Offices to issue Garnishment Notices under EBC Article 89 to Turkish-registered crypto exchange platforms (Binance TR, Paribu, BtcTurk, etc.).

Garnishment Service: Served electronically via UYAP/KESIS, freezing all fiat (TRY) and crypto assets in the debtor's exchange wallet.
Liquidation & Transfer: The exchange liquidates attached crypto assets into Turkish Lira at spot price and transfers funds to the enforcement court's account.

3. Hardware Wallets & Non-Custodial Storage

If a debtor stores funds in self-custody hardware wallets (Ledger, Trezor), direct automated garnishment via UYAP is technically impossible. Enforcement requires physical seizure of the hardware device or court orders compelling disclosure of private seed phrases.

Frequently Asked Questions on Crypto Seizures in Turkey

Can Turkish enforcement offices seize crypto accounts on Binance TR or Paribu?

Yes. Turkish Enforcement Offices issue Article 89 garnishment notices to Turkish-registered crypto exchanges, freezing fiat and cryptocurrency balances belonging to debtors.

Are cold hardware wallets subject to seizure in Turkey?

Assets in cold hardware wallets cannot be frozen via automated UYAP notices; physical seizure of the hardware device or voluntary/court-ordered disclosure of private keys is required.

What should I do if my crypto exchange account is frozen unlawfully?

You can file an appeal with the Enforcement Court or initiate a negative declaratory lawsuit to lift ungrounded attachments.

Can foreign exchanges (Binance Global, Bybit) be garnished from Turkey?

Direct electronic UYAP attachment is limited to Turkish-registered legal entities; international legal assistance or asset declaration orders apply for foreign platforms.

5. Judicial Precedent Decisions

1. Istanbul 14th Enforcement Court Precedent: Seizure of Crypto Exchange Accounts

Istanbul 14th Enforcement Court - Merit: 2021/78, Decision: 2021/112

Summary: Benchmark decision ruling that although cryptocurrencies are intangible, they constitute movable economic commodities subject to attachment under EBC Art. 89.

"...Wallets held with crypto asset service providers represent receivables held by third parties...."

View Full Decision

2. Istanbul 1st Enforcement Court Precedent: Garnishment of Exchange Wallet Balances

Istanbul 1st Enforcement Court - Merit: 2021/45, Decision: 2021/105

Summary: Ruling on the validity of garnishment notices served on crypto asset service providers and rejection of debtor's appeal.

"...CASE SUMMARY: The debtor filed an application contesting the attachment of Tether (USDT) and Bitcoin (BTC) balances held in a crypto exchange account pursuant to a garnishment notice, asserting that digital currencies are not legal tender or capital market instruments...."