Turkey’s so called “national” crypto, Turcoin, has turned out to be a classical example of a Ponzi scheme, local media reported. The founders of the “alternative” digital currency are believed to have fled the country with millions of dollars collected from defrauded investors. The company behind the Turkish token stopped distributing dividends earlier in June.
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‘National, Alternative, Rivaling Bitcoin’
Turcoin, presented as a “rival to the global virtual currency bitcoin,” has been exposed as just another Ponzi scheme, after the executives of the project suddenly disappeared, according to local press reports. The Turkish altcoin, advertised as a national alternative digital currency, was launched by the Istanbul-based company Hipper A.Ş. founded by Muhammed Satıroğlu and Sadun Kaya last year.
In what sounds like a familiar scenario, every new participant in the network was supposed to bring more revenue to the person who signed them up. And as it happens with most financial pyramids, Turcoin crumbled as soon as growth grounded to a halt amid rising suspicions.
Hipper hit the headlines in Turkey with a lavish gala organized to promote the cryptocurrency last year. The event was attended by many Turkish celebrities, Hürriyet recalls. The company has also reportedly given away about 20 luxurious cars to the token’s early adopters.
The project suddenly stopped paying bonuses in early June. Since then, desperate investors have been trying to reach its Istanbul office without much success. “I am ruined. I don’t know what to do,” a 38-year-old man, who bought Turcoins worth 560,000 TL, almost $120,000 USD, told the daily. Hipper’s website is still online, currently offering “Cloud mining rental services.”
Billion Turkish Liras – Gone?
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