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Two Turkish Crypto Exchanges Face Legal Trouble

2_Turkish_Crypto_Exchanges_Investigated_for_Fraud_After_Central
  • Turkish authorities are investigating two cryptocurrency trading platforms.
  • The investigation is due to an alleged exit scam.
  • Both exchanges halted trading a week ago due to the new crypto rules.

Turkish authorities are investigating Thodex and Vebitcoin crypto exchanges over an alleged crypto scam. Based on a report, the probe came after an alleged exit scam by Thodex.

Vebitcoin, a Turkey-based crypto trading platform, is the second crypto exchange to face troubles within a week after the country’s central bank banned crypto use for payments.

The exchange stated,

Due to the recent developments in the crypto money industry, there was a much higher density in our operations than expected. We would like to state with regret that this situation has led us to a very difficult process in the financial field.

Turkish Authorities Detain 4 in Investigation

The company ceased its activities in order to fulfill all rules and claims. However, Turkey’s Financial Crimes Investigation Board has blocked Vebitcoin’s onshore bank accounts. In addition, they started looking into the platform.

According to a local prosecutor Mehmet Nadir Yagcifour, they have arrested about four people so far. However, prior to the arrests, authorities detained 62 people in connection with another crypto exchange, Thodex. 

Added to this, the Thodex CEO fled the country after the exchange stopped operating. Moreover, customers filed complaints against the company, as $2 billion of their funds are inaccessible.

After the Turkish central bank ban on the use of cryptocurrency, both Thodex and Vebitcoin halted trading a week ago. As per Central Bank’s official notice, cryptos cannot be used directly or indirectly for payments. Also, no services can be provided for direct or indirect use of cryptos in payments. 

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Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.