Four Detained As Second Turkish Crypto Exchange Collapses in One Week

Turkish authorities have detained four people as they probe into the collapse of Vebitcoin, the nation’s fourth-largest crypto exchange.

The platform announced on Friday that it is stopping all its activities due to recent developments in the crypto industry. 

On a notice posted on the crypto exchange website, Vebitcoin says,

“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. We have decided to cease our activities in order to fulfill all regulations and claims.”

More than half of Vebitcoin’s close to $60 million daily volumes comes from Bitcoin (BTC), which plummeted by approximately 19% over the past week. 

Bloomberg reports that the Financial Crimes Investigation Board (MASAK) has now blocked Vebitcoin’s bank accounts. Authorities also detained the firm’s CEO İlker Baş and three other employees on Saturday for alleged fraud. 

Vebitcoin becomes the second Turkish crypto exchange to collapse in a week. Istanbul-based Thodex closed down days earlier after investors were unable to withdraw their funds. Thodex founder and CEO, Faruk Faith Ozer, left the country amid the chaos. The firm is still holding investor funds estimated to be worth around $2 billion.

The two crypto firms closed down following Turkey’s announcement that it is banning the use of cryptocurrencies as payment effective April 30. 

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