Turcoin Founders Ran Away With Raised Money – Steal Millions from Investors

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Cryptocurrencies, digital currencies, or more of a common term – ‘Bitcoin’ showed a phenomenal increase in the year 2017. Digital currencies allowed transactions to take place in any part of the world between users without an interference of central authority in between. They gained much importance and were easily accepted by the masses, due to its ease and faster usage. However, as it is said each coin has two sides, the Bitcoin accompanied sudden and much frequent disturbances. Frauds by the firms in respect to cryptocurrencies were one of them.

The cryptocurrency frauds gained momentum soon after Bitcoins become popular and with the rise in the value of other digital currencies. Turkey, the land of the Crescent Moon, seems to be recently hit by cryptocurrency fraud as many of the investors became part of the ‘Crypto Ponzi Scheme’. The digital currency announced within the nation popularly known as Turcoin raised quite an effective amount after being presented as a new alternative and the national digital Token for the nation. The coins were brought in sales from October 2017, and after the ICO the founders fled away. It has been declared as a Ponzi scheme.

Ponzi scheme is a term used widely for fraud investments, where the investors are promised of high benefits and return with usually little or no risk. They usually claim to reward people or the old customers for bringing new customers within their reach. This resembles a pyramid scheme that entails little risk.

It is claimed that the founders duped over 10,000 people and the reports claim that they robbed Turkish Lira [TL] of close to 100 million. However, an alternative news agency claims that the amount robbed off the people amounts to a total of 1 billion Turkish liras which stands to a total of around $212 million.

This alt-currency was found by ‘Hipper’ an Istanbul-based company that was started by Sadun Kaya, and Muhammed Satıroğlu last year. The coin was never accepted by the Government of Turkey. The founders organized lavish parties and gifted people with immense-valued gifts and prolific materialistic gifts to gain their trust. The company even gifted their early investors with cars, in the month of October last year.

The scheme launched by the ‘Hipper’ firm displayed its shady behavior when suddenly the company stopped paying its annual bonuses from the month of June. The scheme had a pyramid structure where people would even be rewarded for each new person they sign up. Suspicion arose when the phone calls remained unanswered and even, suddenly the growth of the firm declined considerably.

One of the founders, Muhammed Satıroğlu, who is also the owner of 49% shares of the company, spoke and said that the company’s bank account doesn’t even have a single dollar as all the money was transferred to Sadun Kaya’s bank account in Cyprus.

Even Satıroğlu seems to be a victim of this digital fraud as the only man under suspicion remains Sadun Kaya, who not only betrayed 10,000 people of Turkey but also left his business-partner with an entire mess unkempt.