Second Crypto Exchange Collapsed in Turkey

Second Crypto Exchange Collapsed in Turkey
  • Vebitcoin website has halted all its activities after facing financial strain. 
  • This is the second Turkish digital currency exchange that has collapsed.
  • Turkish authorities have blocked Vebitcoin’s domestic bank accounts

Vebitcoin announced that its website has halted all its activities after facing financial strain. However, this is the second Turkish digital currency exchange that has collapsed due to a crackdown on the industry. 

Moreover, the exchange also mentioned that it would update the situation to the clients as soon as possible. More so, the Turkish authorities have blocked Vebitcoin’s domestic bank accounts. In addition, detained four people as part of a probe into the crypto exchange, as per Reuters report. According to CoinGecko, prior to the Vebitcoin collapse, it had almost $60 million in daily trading volumes.

Recently, Thodex went offline with its CEO leaving the country. Even more, the Local media reports say Thodex founder Faruk Fatih Ozer went to Albania, taking over $2 billion of investors’ funds with him. Turkey has issued an international arrest warrant for Ozer, while 62 people were detained in contact with complaints filed against Thodex.

Earlier this month, Turkey’s central bank banned the use of digital currency for payments. And President Recep Tayyip Erdogan has called for swift regulation, warning of pyramid plans emerging in the crypto markets.

In the last three years, crypto investors believe the industry has grown significantly. More so, with more institutional investors and corporate backers like Tesla into the market. Bitcoin’s price is up around 80% since the beginning of the year, even after a sharp plunge last week that saw the whole crypto market shed over $200 billion in a day.

That situation has not halted skeptics warning of a potential bubble. Furthermore, according to the Bank of America Fund Manager Survey some 74% of those who responded said they see bitcoin as a bubble. Added to this, even industry insiders are warning a broader regulatory clampdown may be on its way.

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.