Turkish cryptocurrency exchange Vebitcoin has suddenly stopped trading, citing unspecified financial difficulties.

According to a statement on the Vebitcoin website:

Due to the recent interest in cryptocurrencies, our transactions are becoming more intense than expected.

We regret that this situation has put us in a difficult financial situation.

The platform said that it has suspended trading to be able to respect the rights of the claimants with their money, adding that more information will be published soon.

This makes Vebitcoin the second Turkish exchange to shut down this week after Thodex suspended trading last Wednesday, citing first outside investment and later cyber attacks.

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Vebitcoin is one of the smallest trading platforms in Turkey, with a daily trading volume of $60 million.

In comparison, Thodex had a daily trading volume of more than $585.5 million on its last trading day.

There is also the “Paribu” platform, which is one of the largest trading platforms in Turkey, which recorded yesterday a trading volume of 1 billion dollars.

Bitcoin trading accounted for 56% of the daily trading volume of the “Vebitcoin” platform, followed by Ripple at 10% and Stellar at 6%.

The amount of funds held on the platform is not yet known.

Shortly after the announcement, froze The Turkish Financial Crimes Supervision Agency (MASAK) has removed all bank accounts in the country linked to “Vebitcoin” and has opened an investigation into the company and its managers.

Lawyer Mertkan Bayraktar, who is representing seven people in a case against the Thodex trading platform, stated:

Freezing bank accounts is the necessary first step to protect claimants with their money, and those who file a legal complaint in court.

This week has been tragic for the cryptocurrency market in Turkey.

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Exploit the BitGo name:

There are 31 trading platforms in Turkey, including Thodex and Vebitcoin.

To gain customers, trading platforms promote their brand with global names as their partner, such as “BitGo” even if they are not true.

Vebitcoin described itself on its website as a BitGo partner.

BitGo is a well-known company in the crypto arena that specializes in securing digital currencies and is based in California.

In a tweet posted on June 4, 2020, Vebitcoin said:

Vebitcoin is the Turkish partner of BitGo, the world’s most important cold storage cryptocurrency bank

Vebitcoin is the Turkish partner of BitGO, which holds an institutional degree and is the largest exchange in the world in terms of security standards and cryptocurrency diversity.#betjo #cryptocurrency # bitcoin #ethereum # gorand # encrypt pic.twitter.com/ZoVplDzigN

– Vebitcoin (Vebitcointr) June 4, 2020

While and when connected Source With a BitGo spokesperson told that Vebitcoin was only the hot wallet customer and not the cold wallet customer and certainly not a partner, the same spokesperson added:

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Has Vebitcoin exaggerated its relationship with us? Probably.

While the famous Turkish crypto sites played a role in strengthening the relationship of “Vebitcoin” with “BitGo”.

Coinbalina, a popular Turkish crypto site, wrote in August 2019 that the crypto funds on Vetbitcoin are insured with up to $100 million as it has a partnership with BitGo.

Uzmancoin said in September 2020:

All products and assets on the Vebitcoin trading platform are secured through its partnership with BitGo.

This means that the “Vebitcoin” platform exaggerated its relationship with “BitGo” and took advantage of this, according to what a “BitGo” spokesperson told, so that Turkish crypto news sites exaggerated the matter further.

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