Police in the western city of Eskişehir detained one of the founders of Turcoin, a cryptocurrency marketed as the Turkish version of bitcoin, on charges of fraud while another founder was reportedly detained in different city.

Muhammet Satıroğlu was detained yesterday as part of investigation into a Ponzi scheme he allegedly run with a partner, identified as Sadun Kaya by Turkish media. Kaya was detained in the northwestern city of Kocaeli, Doğan News Agency reported. An employee of Satıroğlu's company who was with him at the time was also detained but later released. Satıroğlu and Kaya are the founders of the Istanbul-based company Hipper which was established last year.

The company introduced Turcoin, "a national cryptocurrency" with a lavish party and made the headlines for giving away luxury cars to investors in the currency. The company collected some TL 500 million ($105.3 million) in less than a year and heavily promoted a cryptocurrency mining facility it allegedly invested $25 million in. Yet, complaints by investors piled up over time when the company did not pay the returns it promised to Turcoin investors.