The founders of the “Turcoin” were arrested on July 2 as part of the investigation into the Turkish cryptocurrency.
Sadun Kaya and his business partner at the Istanbul-based company Hipper, Muhammed Satıroğlu, were arrested while three people in the case were released on probation.
Turcoin was presented as Turkey’s “national” alternative digital currency and was launched by Hipper, which was founded by Kaya and Satıroğlu last year.
However, Turcoin was later revealed as a Ponzi scheme after its founders disappeared with millions of dollars.
The company had hit the headlines with the lavish gala for the cryptocurrency attended by a number of Turkish celebrities.
While Turcoin claimed to be a “national” cryptocurrency, the company had raised some eyebrows by giving away luxury cars to its first adopters in October 2017.
Each new participant would bring more revenue to the person who signed them up. As with all Ponzi schemes, it busted when suspicions rose and growth halted, which happened two weeks ago.
The company stopped paying bonuses in early June, leading many members to call its center in Istanbul, but no one answered.
Kaya was accused of fleeing the country with 100 million Turkish Liras collected from 10,000 people.
Kaya and Satıroğlu were detained in June. Satıroğlu was later released on probation, but both were then arrested on July 2 and sent to prison ahead of trial.
Satıroğlu had denied the accusations directed at him.
“I have not fled with the money. I will return all the money to the members if the authorities unblock my bank accounts,” Satıroğlu told Hürriyet in June.