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Investors with little knowledge of investing were promised returns up to 100% by Turgut V and associates in exchange for depositing their money and investing in Dogecoin. As reported by the Turkish media, the authorities are investing in an alleged Dogecoin mining scam that amassed $119 million worth of deposits.
Turkish Authorities Investigates Dogecoin Mining Scam, Turgut V Online Avatar Prime Suspect
TV100, a local channel broke the news on August 23, with police identifying pretended online avatar, Turgut V, as the suspected operator of the scheme.
In accordance with what the authorities believe, Turgut and 11 associates managed to gather close to 350 million Dogecoin valued at $119 million before disappearing.
Turgut reportedly canvassed investments from 1,500 Turkish citizens, drumming up excitement for the Dogecoin mining operation at in-person networking events that held at ritzy locations, and also by making use of the Telegram app.
Investors were promised returns of 100% in 40 days and did pay returns for around 3 months and they were told that the Dogecoin they sent would acquire new equipment to mine DOGE.
Just like Bitcoin, Dogecoin is generated through Proof-of-Work mining, and hence, in that the participants in the network compete to authenticate transactions and produce the next block by mathematically solving complex equations.
Surging Popularity of Cryptocurrency in Turkey
The increasing popularity of crypto assets in Turkey has brought a large number of scammers that are looking forward to leveraging digital assets to dupe victims out of their cash.
Back in the month of April, Turkish authorities jailed six suspects linked with the collapse of Thodex, a crypto exchange based in Turkey. The exchange had precipitously halted withdrawal services earlier that month and grounded funds of the users on the platform.
Moreover, it should be noted that back in April, four employees of the Vebitcoin exchange were arrested on the charge of fraud.