After the Turkish authorities suddenly stopped trading, they are investigating two cryptocurrency exchanges in Turkey. So far, the authorities have blocked access to the bank accounts of the Second Exchange and detained four people. 62 people were detained in connection with the first group of chief executives who fled the country’s exchanges.
Investigating the second Turkish cryptocurrency exchange
The state-run Anadolu News Agency said on Friday that Turkish authorities are investigating another crypto trading platform following the alleged withdrawal of the cryptocurrency exchange Thodex from the scam. Turkey’s cryptocurrency trading platform Vebitcoin became the second cryptocurrency exchange to face trouble within a week after the country’s central bank banned the use of cryptocurrency payments.
Vebitcoin issued a notice on its website on Friday, stating: “Due to the latest developments in the cryptocurrency industry, our business density is much higher than expected. We regret to point out that this situation has caused us to fall into the financial sector. A very difficult process.” The statement continues:
We decided to stop our activities in order to comply with all regulations and requirements.
The Turkish Financial Crime Investigation Commission (MASAK) has blocked Vebitcoin’s onshore bank accounts and started an investigation into the platform. A local prosecutor said on Saturday that so far, four people have been detained as part of the investigation.
Mehmet Nadir Yagci, a prosecutor in the southwestern city of Mugla, said in a statement:
Four managers and personnel of the company were detained on Saturday on suspicion of fraud.
Prior to this, the authorities detained 62 people associated with the cryptocurrency exchange Thodex, and the company’s CEO fled the country after halting transactions on its platform. Customers have filed a complaint against the company because they were unable to obtain $2 billion in funding.
After the Central Bank of Turkey banned the use of cryptocurrencies, including Bitcoin, both Thodex and Vebitcoin stopped trading. The official notice from the Central Bank stated: “It is not possible to directly or indirectly use encrypted assets for payment… It is impossible to provide services for directly or indirectly using encrypted assets for payment.”
After the central bank banned the use of cryptocurrency for payment, what do you think of the Turkish cryptocurrency exchange being accused of fraud? Let us know in the comments section below.
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