Two Turkish cryptocurrency exchanges are under investigation by authorities in Turkey after they abruptly shut down trading. The authorities have blocked access to the bank accounts of the second exchange and so far detained four people. Sixty-two people have been detained in connection with the first exchange whose CEO fled the country.
Second Turkish crypto exchange under investigation
Following the alleged exit scam of cryptocurrency exchange Thodex, another crypto trading platform is under investigation by Turkish authorities, state-run Anadolu news agency said Friday. Vebitcoin, a Turkey-based crypto trading platform, became the second crypto exchange to face problems within about a week after the country’s central bank banned the use of cryptocurrency for payments.
Vebitcoin posted a message on its website on Friday saying, “Due to the recent developments in the cryptocurrency industry, there was a much higher density in our operations than expected. We would regret to say that this situation has led us through a very difficult financial process. The statement continues:
We decided to cease operations to comply with all regulations and claims.
Turkey’s Financial Crimes Investigation Board (MASAK) has blocked Vebitcoin’s onshore bank accounts and has launched an investigation into the platform. So far, four people have been detained as part of an investigation, a local prosecutor said Saturday.
Mehmet Nadir Yagci, a prosecutor in the southwestern city of Mugla, said in a statement:
Four company executives and staff were detained on allegations of fraud on Saturday.
This followed the authorities detaining 62 people in connection with crypto exchange Thodex, whose CEO fled the country after stopping trading on his platform. Customers have filed complaints against the company because $ 2 billion of their funds are inaccessible.
Both Thodex and Vebitcoin stopped trading about a week after the Turkish central bank banned the use of cryptocurrencies, including bitcoin, a means of payment in the country. “Crypto assets cannot be used directly or indirectly for payments … No service can be provided for direct or indirect use of crypto assets in payments,” the central bank said.
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