A scammer is said to have stolen $ 119 million (100 million) from investors in Turkey by promising to generate massive income from the Dogecoin mine.
According to local news channel TV100, the police identified an online nickname “Turcut V” that is believed to be behind the scheme.
Durkut and 11 associates are believed to have been able to collect 350 million Dogecoin worth $ 119 million from 1,500 people before they disappeared.
Turkish broadcaster NTV, Turcut V, promised investors that it would buy Tojcoin and invest in mining technology in zoom calls and private network meetings in luxury locations, offering huge returns.
What was promised to investors?
Investors are reportedly expected to return 100 percent in 40 days.
One victim said that the system had worked well for three months and that the initial investors had received the benefits as promised. But after the plan soared to 350 million Dogecoin in the fourth month, the funding is said to have disappeared.
They sent Dogecoin and told me to buy new equipment for my DOGE. Dogecoins are made by Proof of Work Mining, the same system that uses Bitcoin. The source of the work is for the miners to verify the transactions and settle with the coins by solving the equations to create the next batch.
What is Dogecoin?
Dogecoin is currently the seventh largest cryptocurrency. Although it is now one of the most valuable cryptocurrencies, it was originally created as a parody of Bitcoin.
Inspired by the popular ‘doge’ memory, Dogecoin was created in 2013 by software engineers Billy Marcus and Jackson Palmer, who worked for IBM and Adobe, respectively.
Will scammers get caught?
The Attorney General’s Office in Cox’s Bazar, an Istanbul suburb, is investigating to find Turkut and 11 accomplices.
The Turkish authorities have issued an order prohibiting Turkut and his partner Jism from leaving the country.
Rise of cryptocurrencies in Turkey
Turkey has seen a surge in cryptocurrency trading last year since its lira fell and inflation increased.
American Sinolysis data analyzed by Reuters At the beginning of February and March 24, the trade volume in Turkey reached 218 billion lira (22 billion).
But crypto-related scams and scammers are also active.
In April, Turkish cryptocurrency exchange Sodex abruptly ceased operations and its CEO and founder, Farouk Fatih Iser, fled the country amid allegations that hundreds of millions of dollars had been stolen. Dozens of suspects have been arrested, but Iser’s whereabouts are still unknown. He is believed to own nearly 22 million Turkish lira (2.2 million) on two local crypto exchanges.
That same month, four employees of the Webcoin exchange were arrested on fraud charges, a day after the exchange said it would end operations.