The so-called Turkish “national” cryptocurrency token Turcoin, was a classic example of Ponzi schemes, and its creators have left the country with millions of dollars collected from defrauded investors.
“National alternative capable of competing with Bitcoin”
According to local media, Turcoin that the creators of the project imagined as a worthy “opponent’s first virtual currency Bitcoin”, in fact, turned out to be another Ponzi scheme, after the project leader suddenly disappeared. Turkish altcoin advertised as a national alternative digital currency, was launched last year, the company Hipper A. Ş, based in Istanbul, and the founders of the project were Mohammed Satiroglu and Sadun Kaya.
Traditionally, in the familiar scenario of the creation of the pyramids, every new member of the network was to bring income to the person who drew the diagram. And as is the case with most financial pyramids, Turcoin collapsed as soon as he stopped the inflow of new investors, amid growing suspicions.
To advertising the project were involved many Turkish celebrities, and in the initial stage, the company even handed about 20 luxury cars of the early investors in tokens.
The project suddenly stopped paying bonuses in early June, and since desperate investors unsuccessfully stormed the company’s office in Istanbul. However, the site of the platform is still in the network and provides users with a “cloud mining”.
Billion Turkish liras disappeared along with the creators of the pyramid
As reported by the local newspaper, the leaders of the pyramid left Turkey with 1 billion Turkish liras stolen from the thousands of defrauded investors. Many of them are lured with promises of monthly income of 250 TL ($ 52), in exchange for investments in the 1500 TL ($ 315). Angry investors have attacked the office of the company after learned of the deception.
Now the creators of the pyramid accuse each other of embezzling investors ‘ funds.
“I was only the middleman. Our company Hipper does not even have a single dollar in the Bank. All the money went to the accounts of the company Sadun Kaya in Cyprus”, — said in an interview with Hürriyet Muhammad Satiroglu, one of the founders of the scheme, although according to the project Charter, he owns 49% of the company that issued Turcoins.
He said that he will join the deceived investors and will submit the claim about excitation of criminal case against their partner Sadun Kaya, which, according to the documents, owns 51% of the company, and believed to have left the country with $21 million stolen from 10,000 funds.
Meanwhile, the Sadun Kaya, allegedly left Turkey, argues that he and his partners stole most of the money.
Among the mass of conflicting reports on the extent of fraud is clearly only one thing that Turcoin has all chances to become the biggest Ponzi scheme in the country.
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