Blockchain & Crypto

Turkey arrests Crypto Exchange bosses after exchanges tumble post ban

Last week, Turkey’s Central Bank banned cryptocurrencies and crypto-assets for purchases. As a consequence of this announcement, two local crypto exchanges in Turkey crumbled within a span of few days only. The two exchanges were part of a cryptocurrency boom that offered Turks an option to safeguard their savings. The impact of this announcement hard-hit the crypto exchanges.

The Exchanges

Thodex, an Istanbul-based crypto exchange, suspended trading. Its’s CEO, Faruk Fatih Ozer allegedly fled to Albania with an estimated $2 Billion investor’s fund. He and nine others are now on the hunt. Turkey has issued an international warrant and Turkish police teams have flown to Albania and Kosovo as part of the investigation. The police have interviewed sixty-two people in Turkey in relation to the collapse. The court has also summoned them to testify.

Vebitcoin, the other cryptocurrency exchange located in Mugla, in the southwest, has ceased operations due to worsening financial conditions. Ilker Bas, the company’s CEO, and three other employees have been arrested. Financial Crimes Investigation Board has blocked Vebitcoin’s accounts have been blocked and an investigation is undergoing against them.

Vebitcoin also announced that it has ceased its activities to fulfill all regulations and claims.


As per a Bloomberg Quint report, there are about 390,000 users on Thodex and the volume was $744 million as of Wednesday. Vebitcoin’s daily amount was equivalent to $60 million.

To pacify investor’s concerns, BTCTurk, Istanbul’s largest cryptocurrency exchange, announced that it will begin providing custodian services to clients. Operations will begin in the fourth quarter, and other crypto exchanges will be able to use it.

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Rajat Chawda

Rajat is a student at the Institute of Law, Nirma University. Since a young age, he was fascinated by the technological advancements and his fascination with gadgets has helped him develop a keen interest in TMT Laws in his journey as a law student. He is associated with Mylawrd to further engage himself and learn in this area.

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