Turkish Crypto Founders robbed Investors for Millions

Turkish residents became the victims of huge scam: Turcoin, “national” digital currency, was founded to be a Ponzi scheme, its founders ran away with money
19 June 2018   923

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.
Muhammed Satıroğlu
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.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   936

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.