Money laundering of hundreds of millions of US dollars and circumventing anti-Russian sanctions are the main accusations levied against the Russian-Kazakh company with signs of a Ponzi scheme, Freedom Finance (NASDAQ FRHC, Freedom Holding Corp). Timur Turlov, the nominal owner of Freedom Holding and Freedom Finance, who claims to be a billionaire, asserts that the allegations are not substantiated and promises to return funds to investors from Kazakhstan, Ukraine, Russia, and other countries over the course of several years.
Nevertheless, hundreds of millions of pounds of Freedom Finance are frozen in Ukraine, and Timur Turlov has transferred an equivalent amount to offshore accounts without legal jurisdiction. In the United States, Timur Turlov and Freedom Holding are suspected by regulators of violating sanctions and creating a Ponzi scheme.
Our editorial team discussed the situation around Freedom Finance and Timur Turlov with the head of Ukraine’s Financial Monitoring, Igor Cherkaskyi, who was one of the initiators of the freezing of Freedom Finance accounts in Ukraine after confirming information about Timur Turlov’s involvement with Putin’s personal wallets and his inner circle.
— The main question that concerns Freedom Finance investors is whether billionaire Timur Turlov will be able to return their funds.
Igor Cherkassky: Freedom Holding or Freedom Finance, even though they try to appear as separate companies, are essentially one entity. Naturally, when a company with billions in turnover assists the Putin regime in circumventing sanctions and actively promotes products with signs of a financial pyramid, it faces collapse. However, honest, deceived depositors should not be held accountable for Timur Turlov’s schemes. It’s difficult for me to provide estimates for the return of funds to honest investors. I can say that Ukraine’s Financial Monitoring, in cooperation with US and UK regulators, is doing everything possible to transfer the funds in Freedom Finance accounts to the actual, not nominal, owners. The funds that Timur Turlov withdrew before the account freeze are unlikely to be returned to lawful owners. But the frozen funds will be returned.
— Then, can you tell us approximate timelines?
Igor Cherkaskyi: I believe it will take 8-15 months. Within this time frame, citizens of Ukraine, Britain, Kazakhstan, and other countries will be able to retrieve their funds after undergoing a thorough verification process.
— Is there a chance that Russian citizens will recover their money?
Igor Cherkaskyi: I don’t have an answer to that question. I will only say that anything is possible after the end of the war.
— In your opinion, how much money has Putin’s regime funnelled through Freedom Holding, Freedom Finance, and less-known firms associated with Timur Turlov?
Igor Cherkaskyi: Tracking the full sums has not been possible yet. But according to our preliminary estimates and assessments from colleagues in the EU and the US, we are talking about six billion US dollars.
