Authorities crackdown on Vebitcoin crypto exchange

Crypto exchange Vebitcoin announced yesterday that it had stopped financial activities on its platform due to financial strains. As a result, this led the Turkish authorities to block all onshore bank accounts connected to the cryptocurrency exchange.

According to Bloomberg, Turkey's Financial Crimes Investigation Board blocked Vebitcoin's accounts and opened a probe on their activities. Furthermore, Vebitcoin's CEO Ilker Bas and three other employees have been detained for investigation following the latest developments.

Mehmet Nadir Yağcı, a prosecutor in the southwestern city of Muğla, said, "Four administrators and personnel of the company were detained on Saturday on allegations of fraud. 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."

Vebitcoin is currently the fourth largest crypto exchange in Turkey. It handles roughly a volume of $60 million in daily transactions. In fact, the move against Vebitcoin comes barely 24 hours after local news agencies reported that the police detained 62 people connected with the fraud claims filed against cryptocurrency exchange Thodex.

Thodex users have hired a lawyer to file criminal charges against the exchange's founder and CEO after failing to get access to their funds. As well, the CEO Fatih Ozer is alleged to have fled to Albania with $2 billion of investors' funds.

Turkish authorities are in the process of extradicting him back to the country to face legal consequences. However, Ozer claims the allegations are false. He maintains that the attacks were part of a smear campaign against the crypto exchange, and that the users' funds are safe.

April hasn't been kind to cryptocurrency in Turkey

This month hasn't been a great one for cryptocurrency enthusiasts in Turkey. Earlier, the Turkish central bank banned the use of cryptos as a payment option for goods and services. According to the apex bank, cryptocurrencies are deemed too risky to be considered as good payment options in the country.

Central Bank chief Sahap Kavcioglu hinted that they are working on creating more regulations in the crypto space. "We are working on regulations in terms of cryptocurrency. There are disturbing money outflows to outside of Turkey via cryptocurrencies," he added.

The central bank ban was followed by the news that Thodex recently locked its users out of the platform. Of course, this made it impossible for them to access their funds. The case was still ongoing when the Vebitcoin saga came into play.