ANKARA (Reuters) – Turkish authorities have blocked the onshore bank accounts of Vebitcoin and detained four people as part of an investigation into the cryptocurrency exchange platform, a local prosecutor said on Saturday.<\/p>\n
The action came after Vebitcoin announced that it stopped all of its activities citing financial strains. It became the second Turkish platform in a week to face troubles, after authorities detained dozens of people with suspected ties to the Thodex platform.<\/p>\n
\u201cFour administrators and personnel of the company were detained on Saturday on allegations of fraud,\u201d Mehmet Nadir Yagci, a prosecutor in the southwestern city of Mugla said in a statement.<\/p>\n
Vebitcoin announced on Friday that it had stopped all activities \u201cin order to fulfil all regulations and claims\u201d.<\/p>\n
\u201cDue to the recent developments in the crypto money industry, there was a much higher density in our operations than expected. We would like to state with regret that this situation has led us to a very difficult process.\u201d<\/p>\n
The Financial Crimes Investigation Board (MASAK) blocked the company\u2019s accounts and began an investigation, state-run Anadolu news agency reported.<\/p>\n
Last week, the central bank banned the use of crypto assets for payments, citing \u201cirreparable\u201d damage and transaction risks as reasons for the ban.<\/p>\n