TurCoin Scam: Turkish Virtual Coin Nets 21 Million in Cryptocurrency Scheme
Turcoin, a new crypto which caused quite a commotion online because it was presented as the new alternative digital token for Turkey (and, therefore, a digital national currency), was revealed to be a Ponzi Scheme scam after the founders of this new token disappeared with millions of dollars from the investors.
TurCoin Gave Cars To People To Promote The Scam
This company raised some eyebrows last year. In October 2017, when the sale of Turcoin tokens started, the “national” Turkish crypto company has started to deliver luxurious cars to first adopters and make gala parties for Turkish celebrities.
The strategy, created by Hipper, an Istanbul-based company founded by Muhammed Satıroğlu and Sadun Kaya last year, was to get the attention of people and to sell its product as a genuine national cryptocurrency even if the government never acknowledged it.
How The Turcoin Ponzi Scheme Worked
The scam was actually very simple, like most Ponzi schemes are. Despite all the media around it, Turcoin’s scam actually took almost nine months to be uncovered. The idea is that every participant would have to find people and they would get money from referrals.
Turcoin’s Ponzi scheme lasted for some time until the company simply stopped to pay the investors. Suspicions started about two weeks ago when this happened and this lead many people to call the company in Istanbul, but they got no answers at all.
One Of The Founders Of Turcoin State That He Was Only a Mediator
Muhammed Satıroğlu, which owns 49 percent of Hipper, stated that he was only a mediator and that the company does not hold a single dollar on its bank accounts. All the money went straight to Sadun Kaya’s company, which was based in Cyprus.
Sadun Kaya, which is the major holder of the company, with 51 percent, does not answer calls and have basically vanished after the problems started. The members of the company, including Muhammed, have filed a criminal complaint against the major shareholder, which was accused of fleeing the country with more than 100 million Turkish Liras (about 20 million USD) collected from over 10,000 people in Turkey.
While many are ruined from the Ponzi scheme, the company states that it will give people their money back once bank accounts are unfrozen and the situation with Sadun Kaya is resolved. Now it looks like we need to update the top crypto scams list for 2018 below: