Is Turcoin a Ponzi Scheme? Founders Were Arrested
Founders of Turkey’s national cryptocurrency were arrested on 2 July. The media have announced the project is a Ponzi scheme.
Founders of Turkey’s national crypto asset Turcoin launched in 2017 by Hipper, Muhammad Satiroğlu and Sadun Kaya were arrested after being suspected of involvement in a Ponzi scheme.
The company based in Istanbul has created suspicion among the community since October 2017 when they donated luxury cars to investors and organized an expensive gala where were invited only famous personalities.
“Some of the cars were really given away and some of them were there only for show to persuade more people to join the system,” wrote Hürriyett.
The two founders continued to attract public attention through their extravagant lifestyle until team members noticed that the company ceased to offer bonuses starting June.
It’s a Ponzi scheme
Two weeks ago, the media announced that this project is a Ponzi scheme, given that Kaya, who owns 51% of the company’s assets ran out of the country with 100 million Turkish Liras, about $ 21.4 million USD.
Following the allegation, Muhammad Satiroğlu insisted on his innocence and reported that the abuse of client funds was practiced by his partner Kaya. He revealed that the collected money was transferred to Kaya’s business based in Cyprus. Men were arrested on 19 June by Turkish authorities. At present, they are in jail and awaiting the judge’s sentence.
“I have not fled with the money. I will return all the money to the members if the authorities unblock my bank accounts“, told Satiroğlu. The man refuses to confirm that he was involved in this Ponzi scheme.
The “Turcoin” project received complaints since 2017 when the Turkish state agency claimed it’s “not suitable” for Muslims. This answer was also approved by the Directorate of Religious Affairs.
The announcement comes at a time when Venezuela’s Petro Coin is suspected of the same thing. The lack of transparency of the country’s first cryptocurrency led to several controversies and assumptions that Petro Coin is a Ponzi scheme as well.