Turkey Detains Chief of Cryptocurrency Firm as Market Implodes

A US dollar banknote is seen on top of 50 and 100 Turkish lira banknotes in this picture illustration in Istanbul, Turkey, August 14, 2018. (Reuters/Murad Sezer)
A US dollar banknote is seen on top of 50 and 100 Turkish lira banknotes in this picture illustration in Istanbul, Turkey, August 14, 2018. (Reuters/Murad Sezer)
TT
20

Turkey Detains Chief of Cryptocurrency Firm as Market Implodes

A US dollar banknote is seen on top of 50 and 100 Turkish lira banknotes in this picture illustration in Istanbul, Turkey, August 14, 2018. (Reuters/Murad Sezer)
A US dollar banknote is seen on top of 50 and 100 Turkish lira banknotes in this picture illustration in Istanbul, Turkey, August 14, 2018. (Reuters/Murad Sezer)

Turkey on Saturday detained the chief of one of the country’s biggest cryptocurrency firms after launching a manhunt for the founder of another exchange who fled to Albania.

The Turkish crypto boom threatens to go bust quickly as companies fold and President Recep Tayyip Erdogan’s government prepares to rein in the unregulated digital currency market.

The volume of crypto purchases in the nation of 84 million people rose 10-fold between November and March as Turks sought ways to preserve their savings during a steady drop in the value of the lira currency.

But the market began to unravel when the Istanbul-based Thodex exchange’s founder Faruk Fatih Ozer fled to Albania holding a reported $2 billion in investors’ assets this week.

Thodex reportedly shut down while holding investments from nearly 400,000 users, AFP reported.

Turkey issued an international arrest warrant and detained dozens of Thodex employees in raids staged across the country on Friday.

Officials also blocked the account of the Vebitcoin exchange – one of Turkey’s five-largest – and launched an investigation after it abruptly ceased operation citing financial reasons.

Local news reports said police detained Vebitcoin chief executive Iker Bas and three other company employees on Saturday as part of a broader fraud probe.

“Due to the recent developments in the crypto money industry, our transactions have become much more intense than expected,” Vebitcoin said on its website.

“We would like to state with regret that this situation has led us to a very difficult process in the financial field. We have decided to cease our activities in order to fulfil all regulations and claims.”

Data shared with AFP by the Chainalysis and Kaiko crypto analytics firms show the daily volume of all crypto purchases in Turkey rising from around 500 million liras ($60 million) in November to as much as six billion liras in March.

Coinhills ranks Turkey as the fifth-biggest crypto market in the world.

But Erdogan’s government is reportedly preparing to quickly tighten regulations after deciding to ban crypto from being used for purchases of good and services starting on April 30.

The Turkish central bank warned last week that cryptocurrencies “entail significant risks” because the market is volatile and lacks oversight.

“Wallets can be stolen or used unlawfully without the authorization of their holders,” the central banks said.



Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
TT
20

Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)

Egypt's current account deficit narrowed to $2.1 billion in January to March 2025 from $7.5 billion in the same period a year earlier, the central bank said on Tuesday.

The central bank attributed the slimmer deficit to the increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to higher tourism revenue.

Oil exports declined to $1.2 billion, from $1.4 in the year earlier, while imports of oil products rose to $4.8 from $3.4 billion.

Egypt has sought to import more fuel oil and liquefied natural gas this year to meet its power demands after disruptions to gas supply led to blackouts over the last two years.

Concerns over supplies increased after the pipeline supply of natural gas from Israel to Egypt decreased during Israel’s air war with Iran last month.

Revenues from the Suez Canal, declined to $0.8 billion in the third quarter of the country’s financial year, from $1 billion the same time a year ago, as Yemeni Houthis' attacks on ships in the Red Sea continued to cause disruption.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenues reached $3.8 billion, compared to $3.1 billion in the same period in 2023/24.

Remittances from Egyptians working abroad increased to $9.3 billion, from $5.1 billion. The increase in remittances has helped to reduce the wider trade deficit.

Foreign direct investment hit $3.8 billion, compared to $18.2 billion in the same quarter a year before.

Egypt has suffered an economic crisis exacerbated by a foreign currency shortage, which forced it to undergo economic reforms under an $8 billion IMF program that included allowing its pound to depreciate sharply last year.