Turkey Arrests Ethereum Developer as Crypto Regulations Tighten

August 11, Turkish authorities arrested an Ethereum dev known as “Fede’s Intern” in Izmir for allegedly enabling misuse of the Ethereum...

Written by: Arslan Butt • Monday, August 11, 2025 • 1 min read

• Last updated: Monday, August 11, 2025

Quick overview

An Ethereum developer known as 'Fede's Intern' was arrested in Izmir for allegedly enabling misuse of the Ethereum blockchain.
Fede denies the allegations, claiming his work was purely technical and has garnered support from over 10 countries.
The arrest has raised concerns within the Ethereum community about regulatory overreach and the tightening grip of Turkey on crypto regulations.
Turkey's Capital Markets Board has imposed strict licensing rules and recently banned PancakeSwap, the first decentralized exchange in the country.

August 11, Turkish authorities arrested an Ethereum dev known as “Fede’s Intern” in Izmir for allegedly enabling misuse of the Ethereum blockchain. Fede denies the allegations, saying his work was purely technical and had no illegal intent. No charges or legal documents have been made public.

According to reports, the Minister of Internal Affairs made the claim, but details are unknown. Fede says privacy is a human right and officials should go after real criminals not blockchain innovators.

Industry Response and Legal Concerns

The arrest has sparked reaction from the Ethereum and crypto communities worldwide. Ethereum advocate Ryan Sean Adams called it “very bad” and pointed out that Istanbul was a candidate to host Devcon 2026. Turkish crypto commentator Cenk said it’s “not legal”.

Some think it’s a regulatory misunderstanding or translation error while others are warning of regulatory overreach. Fede has support from over 10 countries and is working to get released and challenge the allegations from Europe.

Turkey’s Grip on Crypto Tightens

This arrest comes as Turkey’s crypto regulation is getting tighter. Since March, the Capital Markets Board (CMB) has imposed strict licensing rules on exchanges, custodians and wallet providers, requiring detailed transaction records and monthly statements. In June, Treasury regulations introduced more restrictions, including 20 character explanations for transactions and caps on stablecoin withdrawals. By July,

Turkey blocked PancakeSwap, the first decentralized exchange to be banned in the country. Authorities have also warned non-custodial wallets and DeFi services to be careful if they serve Turkish users directly.

Highlights:

Ethereum developer detained in Izmir amid vague misuse allegations.
No formal charges or legal documentation disclosed.
Ethereum community and experts express serious concerns.
Turkey’s CMB enforces strict licensing and transaction rules since March.
PancakeSwap banned as Turkey targets decentralized exchanges.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.