Story highlights Turkish-Iranian gold trader Reza Zarrab has been testifying in US federal court

He accused the Turkish President of helping to launder funds for Iran

New York (CNN) The Turkish government on Friday moved to seize assets belonging to a gold trader who, a day earlier, testified in US federal court that Turkish President Recep Tayyip Erdogan helped Iran evade sanctions.

Reza Zarrab, an Iranian-Turkish gold trader currently testifying in a New York criminal trial, is now under investigation by the Terror and Organized Crime Bureau of the Istanbul Public Prosecutor's Office, according to Turkey's state-run Anadolu News Agency.

Friday, the Turkish law enforcement agency decided to confiscate property that belongs to Zarrab and his relatives, the news agency said. Zarrab is married to the Turkish pop-folk singer Ebru Gündeş. Zarrab is being investigated for risking the security of the Republic of Turkey and aiding a foreign state.

These accusations come immediately following Zarrab's explosive testimony in US federal court Thursday, when he claimed that Erdogan played a role in helping Iran launder funds from oil and gas sales through Turkish banks. Zarrab has pleaded guilty to bank fraud and money laundering, admitted to running the international scheme, and is now testifying against a Turkish banker on trial.

Turkey's government has rebuked the US investigation, portraying it as a wild conspiracy against Turkish politicians. Turkish Prime Minister Binali Yildirim said Friday that he hopes Zarrab will cease cooperating with US prosecutors.

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