Turkish authorities say four people linked to the cryptocurrency platform Vebitcoin have been arrested on suspicion of fraud.
Hours earlier, the company had suddenly announced that it had stopped operations, citing financial difficulties.
Officials re-launched the investigation and closed the accounts on the platform.
Turkey’s Crypto Market
Earlier this week, Turkey’s second platform, Thodex, was shut down holding investments from about 390,000 users.
An increasing number of people are opting to use cryptocurrencies in Turkey in an effort to protect their savings from the sharp decline in the local currency, the lira. But the Turkish cryptocurrency market is not legally regulated.
Last week, Turkey said it would ban the use of cryptos to pay for goods and services from April 30.
Mehmet Nadir Yagci, a prosecutor in the southwestern town of Mugla, said the four detainees were managers and operators of the platform.
Vebitcoin Failure
On Friday, Vebitcoin announced on its website that it had suspended all operations “in order to comply with all laws and claims”. It was not immediately clear how many people were affected.
“Due to recent developments in the crypto currency industry, there has been a much higher pressure on our operations than expected. We would like to say with regret that this situation has led to a very difficult process,” it said.
Thodex Founder Flees To Albania
Meanwhile, Turkey has issued a warrant for the arrest of Thodex founder Faruk Fatih Ozer, who reportedly fled to Albania with an estimated $ 2bn (£ 1.4bn) from investors.
Police also arrested 62 people in connection with Thodex. Mr Ozer called the allegations “baseless” and said he was in Albania for business meetings.
On Wednesday, Thodex posted a message saying it needed five days to handle an unspecified outside investment before it suspended trading. An investigation into the platform has been launched.
