Ponzi scheme: the cause of the arrest of the Turcoin's founders

Muhammad Satiroğlu and Sadun Kaya, the founders of the Turkish national cryptocurrency , the Turcoin, were arrested on July 2 after being investigated on a Ponzi scheme.

Suspicious actions

The Turcoin was launched in 2017 by the company Hipper, led by Muhammad Satiroğlu and Sadun Kaya. Suspicions began to weigh on the Istanbul-based company last October when it donated several luxury cars to investors and organized a very expensive gala where the guests were mostly celebrities.

"Some cars were really distributed and some of them were only there for the show to persuade more people to join the system," Hürriyett said.

The two founders have been in the spotlight ever since. Their extravagant lifestyle has caught the attention of the general public. Team members quickly noticed that the company stopped offering bonuses in June. The Istanbul Customer Support Center has therefore stopped responding to calls. Several investors then lodged a complaint.

A Ponzi scheme

Local media denounced Hipper's Ponzi scheme two weeks ago. Kaya, which holds 51% of the company's assets, reportedly fled the country with 100 million Turkish lira, or $ 21.4 million.

Muhammad Satiroğlu proclaimed his innocence while accusing his partner Kaya. He said the money collected had been transferred to the Kaya company based in Cyprus. The arrests ensued on June 19 and the Turkish authorities detained the suspects until the judge's sentence was handed down.

"I did not run away with the money. I will return all the money to the members if the authorities unlock my bank accounts, " said Satiroğlu.

Complaints about the Turcoin cryptocurrency project started in 2017 when the Turkish state claimed that it was "not appropriate" for Muslims. The Religious Affairs Directorate supported his statement.

Meanwhile, Venezuelan state cryptocurrency, Petro , is also accused of a Ponzi scheme. It is at the heart of suspicions, being already the subject of several media hype around the world.

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