As claimed in the Turkish Minute, the founders are supposed to have cheated about 10,000 investors for at least 100 million Turkish lira (around $21 million). Nevertheless, the Ahval News informed the stolen amount to be 1 billion Turkish lira ($212 million), making it one of the largest scams to date.
The coin was ran by the firm Hipper, placed in Istanbul. The exchange was established by Muhammed Satıroğlu and Sadun Kaya last year. They organized a massive marketing campaign for the promotion of the coin and arranged the parties attended by many Turkish celebrities. The word about the cryptocurrency exploded as the firm gave away luxury cars to its early adaptors in October last year.
The business model of the coin has likeness with classic Ponzi schemes as the organization was rewarding the existing investors who were attracting new participants. The suspicion for the model increased over time and shadiness of its business were affirmed as the company ceased paying bonuses from early June.
I was only a mediator. Our company Hipper does not even have a single dollar in the bank. All the money went to Sadun Kaya’s company in Cyprus. I have not fled with the money. I will return all the money to the members if authorities unblock my bank accounts.
Stakes Owner, 49 Percent of Hipper
The real causer seems to be Sadun Kaya, the majority partner of Hipper, who stopped answering phone calls of his business partners.