Turkey Probes 2nd Crypto Exchange As Market Implodes

This is coming following President Recep Tayyip Erdogan’s government plans to rein in the unregulated digital currency market.

According to reports, the volume of crypto purchases in the nation of 84 million people rose 10-fold between November and March as Turks sought ways to preserve their savings during a steady drop in the value of the lira currency.

Intrsetingly, the market began to unravel when the Istanbul-based Thodex exchange’s founder Faruk Fatih Ozer fled to Albania holding a reported $2 billion in investors’ assets this week.

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Thodex reportedly shut down while holding investments from nearly 400,000 users.

Turkey issued an international arrest warrant and detained dozens of Thodex employees in raids staged across the country on Friday.

Officials also blocked the account of the Vebitcoin exchange — one of Turkey’s five-largest — and launched an investigation after it abruptly ceased operation citing financial reasons.

Erdogan’s government is reportedly preparing to quickly tighten regulations after deciding to ban crypto from being used for purchases of good and services starting on April 30.

The Turkish central bank warned last week that cryptocurrencies ‘entail significant risks‘ because the market is volatile and lacks oversight.

‘Wallets can be stolen or used unlawfully without the authorisation of their holders,’ the central banks said.

AFRICA DAILY NEWS, NEW YORK