Turkey’s Cryptocurrency Boom Turns to Bust

Cryptocurrency enthusiasts are getting a huge reality check in Turkey — with two exchanges collapsing in a week.

Turkey has launched an international manhunt for the founder of Thodex, one of its major cryptocurrency exchanges, after he stopped paying clients and fled the country. Vebitcoin, a second exchange, collapsed days later and its CEO was reportedly detained.

The exchanges were part of the cryptocurrency boom that drew in legions of Turks seeking to protect their savings from rampant inflation and an unstable currency. Inflation hit 16.2% in March, more than three times the central bank’s target.

The dangers of the poorly regulated crypto market couldn’t have been better illustrated than by the unfolding events amid a rout in Bitcoin. Turkish officials are now calling for rapid regulation of the market, with the central bank banning cryptocurrencies as a form of payment