Turkey Blocks Bank Accounts of a Crypto Exchange Even as It Hunts for the CEO of Another

Turkish authorities blocked all onshore bank accounts of cryptocurrency exchange platform in the country, the state-run Anadolu news agency said.

• The action late Friday came after crypto exchange Vebitcoin announced that it stopped all of its activities citing financial strains, Anadolu said.
• The Turkish Financial Crimes Investigation Board has launched an investigation of the exchange and its managers, the state-controlled agency said.
• The move against Vebitcoin comes a day after the agency reported police detained 62 people in connection with criminal complaints filed against crypto exchange Thodex.
• The Thodex crypto exchange went offline April 18 with its CEO subsequently going missing, fleeing the country according to reports. Users have reportedly filed a complaint alleging hundreds of millions of dollars have been stolen, Anadolu reported.
• April has not been a kind month to crypto in Turkey. Even before the actions against Thodex and now Vebitcoin, the Turkish central bank announced on the 16th that cryptocurrency is to be banned as a means of payment.
• The ban is being enacted at a time when crypto use was soaring as the Turkish lira has faced significant outside selling pressure.
• The currency plunged in foreign exchange markets following President Recep Tayyip Erdogan’s firing of the nation’s top central banker Naci Agbal in March.
• Many have turned to cryptocurrency as an alternative method of payment in order to circumvent the issues plaguing the lira.