Hot off the heels of the recent news of the collapse of Thodex and the CEO who fled the country, another cryptocurrency exchange followed suit in Turkey. This is surely a huge blow to the economy and more alarmingly, the investors.
Fall of Vebitcoin
An official report stated that Vebitcoin has stopped operations of its digital exchange claiming it was due to the financial conditions which have been deteriorating in Turkey. Vebitcoin’s system has since bene blocked by Turkey’s Financial Crimes Investigation Board. Ilker Bas, the Chief Executive, together with 3 other employees have since been detained for investigations.
Growing worries among investors
Thodex is one of the largest exchanges in Turkey and its closure a week earlier has caused concerns among the investors who are uncertain where their money could end up. Now Vebitcoin is going through the same path. It is the fourth-biggest exchange in Turkey. Each day, it facilitates about US$60 million in funds of which more than 50% of those are BTC.
Both Thodex and Vebitcoin became as big as they are due to the recent cryptocurrency boom in Turkey. This was at a time when inflation was over 16% and a weakening Lira saw people in the country looking for alternative ways to protect and grow their money. Because of this situation, the Central Bank of Turkey has banned cryptocurrencies for payment and stopped the mediating of money transfer to the crypto platform. This has surely created a lot of negative effects on the economy which needs to be set back on it path to recovery.