Authorities in Turkey are investigating the operator Turgut who allegedly created a cryptocurrency scam on Dogecoin mining.
The estimated amount 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 had promised its investors 100% returns on their investments made to be received in just 40 days.
And just the authorities claim that the suspected operator and his 11 associates have already managed to collect almost 350 million DOGE, the equivalent of $119 million, through this method.
How the Dogecoin Scam Worked
Basically, by exploiting the hype around the crypto meme, the scammers managed to lure as many as 1,500 Turkish citizens into their trap, filling them with enthusiasm, involving them in networking events in elegant and luxurious places, all while communicating with them through a Telegram group.
Typical of the Ponzi scheme, the investment, and affiliate program was related to Dogecoin mining, only in the word. In fact, each participant would have to invest an initial capital to help the platform purchase new mining equipment; in return, they would receive their 100% profit in 40 days.
The platform paid for the first three months then, as with any scam, blocked withdrawals, and the owners vanished into thin air with the loot.
The investigation by the office of the chief prosecutor of Istanbul’s Küçükçekmece suburb seeks to locate Turgut and his 11 associates, having already issued an order restricting the accused from traveling outside the country.
Turkey and cryptocurrency scams: not only Dogecoin
It is safe to say that the spread of cryptocurrency in Turkey has triggered multiple scams involving more than just DOGE.
In April this year, in fact, the exchange Thodex, which has been active since 2017, reportedly ceased operations overnight without giving users the opportunity to withdraw their BTC and cryptocurrency, vanishing into thin air.
With the total disappearance, users of the Turkish exchange Thodex had to experience panic indeed.
Not only that, it’s worth noting that the sudden blocking of the exchange allegedly happened at a time when Bitcoin was touching its ATH – All-Time High – of $65.000, bringing all the rest of the cryptocurrencies into the green as well.
The crypto ban and the rise of scammers
The Turkish government’s lack of control over cryptocurrency management saw it issue a regulatory act in early April banning the use of Bitcoin and other cryptocurrencies.
The ban on using cryptocurrencies in payments also involves exchanges, and perhaps the problem of Thodex’s disappearance could also be attributed to this law instead of being a real cryptocurrency exit scam.
Different instead, the cryptocurrency scam of the DOGE mining platform where the operators have just acted intentionally to cheat users and rob them.
In both cases, it was Turkish citizens who lost out.
