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 ?lker Ba? 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.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens