On July 2nd, the 2 founding members of Turcoin — the self-proclaimed nationwide cryptocurrency of Turkey — have been arrested. This comes only some weeks after native information retailers reported the undertaking to be a Ponzi scheme.
The corporate Hipper, headed by Muhammed Satiroğlu and Sadun Kaya, launched Turcoin final yr — supported by efforts of Turkish politicians trying to set up a nationwide cryptocurrency.
The Istanbul-based firm had already sparked concern after freely giving luxurious automobiles to preliminary buyers in October 2017, coinciding with a expensive gala which was attended by a number of Turkish celebrities. One early adopter defined to the Hürriyett:
A few of the automobiles have been actually given away and a few of them have been there just for present to steer extra folks to affix the system
The 2 males’s opulent way of life and excessive spending continued to garner quite a lot of consideration, with members reporting that the corporate had stopped paying bonuses in early June.
It’s All A Ponzi Scheme
Two weeks in the past, it was introduced that the enterprise had been nothing greater than a Ponzi scheme — following information that Kaya had been accused of fleeing the nation with 100 million Turkish Liras (about $21.four million USD). Kaya, who presently holds 51 p.c of the corporate, was unreachable after the purported flee.
In mild of the accusation, Satıroğlu insisted on his innocence, submitting a legal grievance in opposition to his companion Kaya. He claimed that every one the cash had gone to Kaya’s firm in Cyprus. Each males have been detained on June 19 by Turkish officers.
Satıroğlu was later launched on probation — solely to be arrested on July 2nd with Kaya. Each males at the moment are in jail pending trial.