Turkish Cryptocurrency Exchange Vebitcoin Has Accounts Blocked Following Financial Strains

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In Brief
  • Vebitcoin shutting down following financial difficulties.

  • The announcement comes days after Thodex CEO flees with $2 billion.

  • Turkish Central Bank set to implement stricter cryptocurrency laws.

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Turkish cryptocurrency exchange Vebitcoin has had its onshore bank accounts blocked following recent news that the exchange is battling through financial strains.

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Reuters has reported that Vebitcoin is currently under investigation by authorities. Action against the exchange was taken following Vebitcoin announcing that it was stopping all of its trading activities. The exchange cited financial strains for the reasons related to halting operations. 

Another blow to Turkish cryptocurrency market 

The news comes as a major blow to Turkish cryptocurrency traders who had to deal with the recent closure of another local exchange this week.

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Vebitcoin stated that it had stopped all activities in order to “fulfill all regulations and claims.” In a statement published on the Vebitcoin website, the announcement says “Due to the recent developments in the crypto money industry, our transactions have become much more intense than expected. We would like to state with regret that this situation has led us to a very difficult process in the financial field. We have decided to cease our activities in order to fulfill all regulations and claims.”

Thodex CEO on the run with $2 billion

The news comes days after another Turkish cryptocurrency exchange, Thodex, saw its CEO, Faruk Fatih Ozer simply disappear with an estimated $2 billion in funds. Leaving users with no access to their funds or any way to withdraw. 

Authorities have acted swiftly in an attempt to find the Ozer. In the meantime, 62 people have been arrested and detained in connection with fraud complaints at the exchange. 16 more people are currently still expected to be arrested. 

Authorities in Turkey have moved in quickly on the Vebitcoin staff following the announcement. Four administrator staff members have been detained under allegations of fraud. 

Turkey laws clamping down on cryptocurrencies 

The news comes as a major blow to cryptocurrency traders in the country. The Turkish Central Bank had already taken steps in banning cryptocurrency payments. Citing that cryptocurrency payments potentially present non-recoverable losses for investors and traders. 

The latest developments now see two Turkish cryptocurrency exchanges halting business in what appears to be fraudulent matters. The move could likely bring more government intervention in the future. 

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Ryan is a Fintech specialist with a passion for cryptocurrencies and blockchain adoption. A keen trader and investor in the market since 2016, he enjoys keeping up to date with the latest developments within the industry while finding the next 100x altcoin.

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