Relating to the alleged exit scam pulled by cryptocurrency exchange Thodex, another crypto trading platform is being investigated by Turkish authorities, the state-run Anadolu news agency said Friday.
Vebitcoin, a Turkey-based crypto trading platform, became the second crypto exchange to face troubles within about a week after the country’s central bank banned crypto use for payments.
The trading platform broadcasted a notice on its website on Friday stating:
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.
The broadcast reads further:
We decided to cease our activities to fulfil all regulations and claims.
Notwithstanding, Turkey’s Financial Crimes Investigation Board (MASAK) has halted the onshore bank accounts of Vebitcoin and begun an investigation into the platform.
So far, four people have been detained as part of an investigation, according to a local prosecutor on Saturday.
Mehmet Nadir Yagci, a prosecutor in the southwestern city of Mugla, said in a statement:
Four administrators and personnel of the company were detained on Saturday on allegations of fraud.
This arose the authorities detaining 62 people in association with crypto exchange Thodex whose CEO has fled the country after halting trading on his platform. Customers have filed complaints against the company as $2 billion of their funds are inaccessible.
Both Thodex and Vebitcoin halted 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 official notice by the central bank reads.
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