Founders of Alleged $211 Million Turcoin Ponzi Scheme Arrested

Avi Rosten

The founders of the allegedly fraudulent cryptocurrency Turcoin have been arrested after the scheme was revealed last month to be an apparent Ponzi scheme.

According to Turkish newspaper Hurriyet Daily News, Sadun Kaya and his partner Muhammed Satıroğlu of the Istanbul-based company Hipper Inc. were both arrested on Monday, while three others were released on probation.

As previously covered on CryptoGlobe, last month Sadun Kaya and another founder - Mehmet Aydin - made headlines in June after allegedly feeling Turkey with over $211 million (1 billion Turkish Lira) worth of funds.

Launched as a national-themed rival to bitcoin in October 2017, the company gained a lot of attention in Turkey by enlisting Turkish celebrities in the coin’s lavish launch party, and giving away expensive cars to early adopters.

Although the precise nature of the alleged scheme seems to still be unclear, reports last month detailed that the company had promised clients a monthly income of 250 Turkish Lira for an investment of 1500 TL, and annual income of around 3000 TL, but aroused the suspicion of authorities before being shut down.

The latest report explains that Kaya and Satıroğlu were previously detained in June before being released on probation, but both were arrested again yesterday and sent to prison to await trial.

Satıroğlu in June strongly denied the claims against him remarking:

“I have not fled with the money. I will return all the money to the members if authorities unblock my bank accouns. Actually they are the ones who are involved in serious corruption.”

Muhammed Satıroğlu

While fraudulent ICOs and crypto scams seem to be hitting the news on an almost weekly basis, the arrest and trial of suspects in such a high-value case is a significant development for the industry as it attempts to crack down on its criminal elements.

Crypto Scammers Responsible for $24 Million in Bitcoin Theft Through First Half of 2020: Report

Michael LaVere
  • New Whale Alert report shows crypto scammers have raked in $24 million in bitcoin through the first six months of 2020.
  • One scammer leveraged YouTube advertising to steal $130k in BTC per day. 

Crypto monitoring service Whale Alert has published a report showing that crypto scammers are responsible for $24 million in bitcoin theft through the first half of the year, including the exploitation of YouTube advertising. 

According to the report “Chasing Crypto Criminals” published July 10, cyber-thieves are finding easy prey in the form of bitcoin and other crypto-asset investors. Whale Alert summarized its exhaustive reviews of hundreds of websites and thousands of reports of theft as “crypto crime pays. A lot.” 

Whale Alert claimed there was little risk involved for crypto-based criminals, despite the massive economic impact being imposed on victims. The report confirmed at least $38 million in bitcoin alone being stolen via scams over the past four years, excluding the use of Ponzi schemes. 

The report reads, 

Some of the most successful scams made over $130,000 in a single day with nothing more than a one page website, a bitcoin address and a decent amount of YouTube advertising.

Whale Alert outlined another scam which brought in $1.5 million over six months through promoting a fake cryptocurrency exchange. The report claims the advertisement took victims to an “amateurish website riddled with spelling errors,” before tricking users into depositing their funds. 

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