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In just a few days’ time, two Turkish cryptocurrency exchanges have abruptly halted trading and are now under investigation of The Turkish Financial Crimes Investigation Board.
Vebitcoin, a Turkish cryptocurrency exchange, today stopped trading in a shock move, citing unspecified financial difficulties.
“Due to the recent interest in crypto, our transactions have become much more intense than expected was stated on Vebitcoin website. “We regret that this situation has put us in a financially difficult position.” According to the exchange, trading was suspended to be able to “honor the claimants’ rights,” adding that more information will follow shortly.
Vebitcoin is now the second Turkish exchange this week to close operations. Turkish authorities have also blocked all its onshore bank accounts.
Thodex was the first one to do so on Wednesday, first attributing it to outside investors after which it claimed to be victim of cyber-attacks. However, we know more now and it is report that police detained 62 people in connection with criminal complaints filed against the crypto exchange. Charges include fraudulent activity totaling more than $2 billion. An international manhunt for its Chief Executive Officer is still under way.
Vebitcoin is one of the smaller exchanges in the country. According to CoinMarketCap its trading volume averaged around $50 million daily. Thodex trading volume averaged over ten times just near $600 million daily. In comparison, Paribu, the largest exchange operating in the country trades over $1 billion on a daily basis.
April has not been great for crypto in Turkey. Even before the actions against Thodex and now Vebitcoin, on April 16, the Turkish central bank announced a ban on cryptocurrency as a means of payment. The ban comes at a time when crypto use was surging as the Turkish currency has experienced enormous outside selling pressure.