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.

VeChain Foundation’s 'Buyback' Wallet Gets ‘Compromised’, Hacker Steals 1.1 Billion VET Tokens

Siamak Masnavi

At 17:00 UTC on Friday (December 13), the VeChain Foundation announced that their "buyback address was compromised." 

This was the tweet they sent out to announce this terrible news:

So, what is the buyback address that the VeChain Foundation is referring to?

Well, back on 30 June 2019, the VeChain Foundation announced a $25 million buyback plan:

In today's announcement, the foundation says that 1.1 billion VET tokens (worth roughly $6.5 million at current VET prices) were taken from the hot wallet they were using for the buyback plan, and that these VET tokens were transferred by the hacker to 0xD802A148f38aBa4759879c33E8d04deb00cFB92b:

They go on to say that "all the addresses associated with the said hacker’s address have been tagged on VeChainStats, the list is automatically updated as soon as the hacker sends any funds from the original hacker’s address."

VeChain Foundation "has been tracing the transfer of these VET Tokens in real-time," and here is what they have done so far to manage this situation:

  • "We have notified all exchanges to monitor, blacklist and freeze any funds coming from the hacker address and any withdraws from the corresponding exchanging wallets."
  • "We have launched an investigation into every fact around the address to determine the motive, method, and data flow behind this malicious act."
  • "We have enlisted the assistance of Hacken along with its whitehat community, and vechainstats.com teams to help with monitoring and containment of the situation."
  • "We have also started a security check immediately on the other crypto assets under the custodian of the Foundation, to make sure no further breach will occur."
  • "We have reported this incident to law enforcement in Singapore."

According to data from CryptoCompare, VET is currently trading at $0.005824, down 4.93% in the past 24-hour period:

VET-USD 24-Hour - 13 Dec 2019.png

We will update this article as more details become available...

Featured Image Credit: Photo via Pixabay.com