Recently, the media reported that Turcoin, which is the “national” Turkish cryptocurrency, was, in fact, a typical copy of the Ponzi scheme. It was announced that the creators of the new currency of the digital market left the country, taking with them a big amount of investors’ money. Earlier this month, the company, as well as Turkish tokens, ceased to form and issue interest income.
Turcoin – “National” Cryptocurrency
Based on information provided by the local press, Turcoin was one of the main alternatives to cryptocurrency bitcoin, until it was called another one Ponzi scheme case due to the disappearance of the management of this project. In 2017, Sadun Kaya and Muhammed Satıroğlu, who are the creators of Hipper A.Ş, located in Istanbul, launched a new national currency, Turkish altcoin.
Turcoin was based on a typical construction, which was built in such a way that each participant received income based on the number of new users signed through the account, assigned to the exact participant. But when the number of unanswered questions reached its peak and the rise pulled up, the cryptocurrency system fell down, as it usually happens with the same type of financial pyramids.
In 2017, many headlines of the Turkish media were full of news about the new cryptocurrency created by Hipper Company. At events dedicated to PR, there were various Turkish celebrities. There was also news that the company gave 20 deluxe cars to the first token’s adopters.
At the beginning of the month, users suddenly stopped to receive their monthly interest. Since that moment investors have not left hopes to receive any explanations, trying to get in touch with the main Istanbul office in vain. The 38-year-old client, who purchased cryptocurrency on the sum of 560 thousand TL (about 120 thousand US dollars), commented on this situation that he is very confused and does not know what will happen next. Nevertheless, the company’s website is still functioning, providing “Rental Services for Cloud Mining”.
Disappearance of Million Turkish Liras
Sabah reports that the company’s management has left the country, stealing about 1 billion TL from its customers. Most investors were tempted by a seductive offer to receive 250 TL (about 52 US dollars) per month on their 1500 TL invoices (almost 315 US dollars). Ignoring the reports and the absence of any comments led to the fact that one of the offices located in the province of Kocaeli (north-western part of Turkey) was attacked by abandoned and deceived users.
Muhammed Satıroğlu, one of the founders of Hipper, says that he acted only as an intermediary and the fund of the company is completely empty, as all money was directed to the company owned by Sadun Kaya and which is located in Cyprus. About 49% of all shares of the company on which Turcoins was based belong to him.
Satıroğlu together with deceived investors made a criminal case, accusing Sadun Kaya of stealing 100 million TL (about 21 million US dollars) and deliberately deceiving 10 thousand customers. It is believed that Sadun Kaya owns 51% of all shares of the Turkish company Hipper and that he suddenly left the country with the money of investors. Muhammed Satıroğlu says that he is also deceived, like everyone else, and that he has not stolen a single dollar. By the way, he promised to gradually return money to investors when his accounts are defrosted by the Turkish authorities.
On the other hand, Sadun Kaya says that everybody tries to make him extreme and hang all the responsibility on him, although most of the money was stolen by his partners. Nevertheless, it became known that Kaya also belongs to the management of another company Anafis Inc., which was seen as a participant of this scheme as well.
Turcoin may be the largest Ponzi scheme in Turkey, especially considering all the comments about this fraud. Today, the biggest scam is the case of 26-year-old Mehmet Aydın, who was the owner of Çiftlik Bank, located in the north-west of the province of Sakarya. The guy ran away to Uruguay, taking with him 500 million TL (about 128 million US dollars), deceiving about 78 thousand people in 2 years.