Authorities in Turkey are investigating operator Turgut, which allegedly created a cryptocurrency scheme in Dogecoin mining.
Approximately 1,500 people involved in cryptocurrency fraud at Dogecoin mining in Turkey, the estimated value of the fraud is $119 million.
According to TV100 reports, Turkish prosecutors broke the news of their investigation into the DOGE mining platform.
This scam promised its investors a 100% return on their investments made in just 40 days.
And only the authorities claim that the alleged operator and its 11 associates have already managed to raise nearly 350 million DOGE, the equivalent of US$ 119 million, through this method.
How the Dogecoin scam worked
Basically, exploiting the hype surrounding the crypto meme, the scammers managed to lure up to 1,500 Turkish citizens into their trap, filling them with enthusiasm, involving them in networking events in posh and luxurious places, all while communicating with them through a group on the telegram.
Typical of the Ponzi scheme, the investment and affiliate program were related to Dogecoin mining, just in word. In fact, each participant would have to invest seed money to help the platform buy new mining equipment; in return, they would receive their 100% profit in 40 days.
Another ponzi scam now with more than 1,500 people involved in cryptocurrency fraud at Dogecoin mining in Turkey
The platform paid for the first three months, then, as with any scheme, blocked withdrawals and the owners disappeared into thin air with the loot.
The investigation by the chief prosecutor’s office in Istanbul’s Küçükçekmece suburb is aimed at locating Turgut and his 11 associates, having already issued an order restricting the accused from traveling outside the country.
Turkey and cryptocurrency scams: not just Dogecoin
It’s safe to say that the spread of cryptocurrency in Turkey has unleashed several scams involving more than just DOGE.
In fact, in April of this year, the Thodex exchange, which has been active since 2017, allegedly closed operations overnight, without giving users the opportunity to withdraw their BTC and cryptocurrency, disappearing into thin air.
With the total disappearance, users of the Turkish Thodex exchange panicked.
Also, it’s worth noting that the exchange crash supposedly happened at a time when Bitcoin was touching its $65,000 ATH – all-time high – bringing all the rest of the cryptocurrencies to the green as well.
The ban on cryptocurrency and the rise of scammers
The Turkish government’s lack of control over the management of cryptocurrencies has caused it to issued a regulatory law in early April banning the use of Bitcoin and other cryptocurrencies.
The ban on the use of cryptocurrencies in payments also involves exchange, and perhaps the problem of Thodex’s disappearance can also be attributed to this law, rather than being a true cryptocurrency exit scam.
Rather, it is different from the DOGE mining platform’s cryptocurrency scheme, in which operators acted intentionally to trick users and rob them.
In both cases, it was Turkish citizens who lost.