According to a recent report from Reuters, a Turkish court has jailed six suspects as part of its investigation into local cryptocurrency exchange Thodex.
Thodex and Ozer cited liquidity problems, a years-old hacking incident and the inability to transfer shares to an outside investor as reasons for the apparent exit scam.
“At least 83 people were detained over the past week as users of the platform said the company scammed them and blocked access to accounts and money withdrawals,” Reuters reported.
The Turkish government is also reportedly exploring the idea of establishing a central custodian bank for cryptocurrency exchanges following the issues with Thodex, as well as the local cryptocurrency exchange Vebitcoin.
Though it is not possible for a government to outright ban a decentralized financial system like Bitcoin, it can make it difficult for citizens to leverage, particularly by instituting restrictions on payments services and bitcoin exchanges.