- Another exchange investigated for fraud in Turkey
- Nexus between Thordex and Vebitcoin scam
Barely two days after Cryptopolitan reported that Faruk Fatih Ozer, CEO of Thodex exchange, a Turkish exchange firm, abscond with funds locked on the platform, another Turkish exchange, Vebtcoin, is being investigated for fraud.
Vebitcoin CEO, İlker Baş, has been arrested by authorities alongside three other employees of the firm. Muğla chief public prosecutor Mehmet Nadir Yağcı announced in a statement to local media that four employees including the CEO have been detained by law enforcement following allegations of fraud.
On Friday, the exchange (Vebitcoin) announced that it would be ceasing operations in a short statement posted on its website. They claimed that unforeseen financial strain led to the decision and said it was due to the unusually high number of withdrawals and recent development in the crypto ecosystem in the country.
However, authorities were alarmed by the exchange’s announcement and immediately swung into action as the exchange is among the largest in Turkey. Transactions worth around $60 million in trading volume is conducted on the platform daily, with Bitcoin being the most traded crypto.
Thorax exchange, Vebitcoin exchange, nexus between Turkish firm heist
The heist by both exchange firms is coming weeks after Turkey government placed a ban on crypto in the country. Similar to Vebiticion, Thordex suspended trading because of an unspecified partnership transaction. They released a statement noting that services would be shut down.
The exchange CEO was said to have absconded with over $2 billion to Thailand. Reportedly, authorities have begun a manhunt for the CEO. Police subsequently issued upwards of 75 arrest warrants and detained 62 in connection to a possible exit scam.
The arrests and closures come after a surprise “diktat” from Turkey’s newly-appointed central bank governor, effectively banning cryptocurrencies in the country, which will go into effect on April 30th.