The founders of the allegedly fraudulent cryptocurrency Turcoin have been arrested after the scheme was revealed last month to be an apparent Ponzi scheme.

According to Turkish newspaper Hurriyet Daily News, Sadun Kaya and his partner Muhammed Satıroğlu of the Istanbul-based company Hipper Inc. were both arrested on Monday, while three others were released on probation.

As previously covered on CryptoGlobe, last month Sadun Kaya and another founder – Mehmet Aydin – made headlines in June after allegedly feeling Turkey with over $211 million (1 billion Turkish Lira) worth of funds.

Launched as a national-themed rival to bitcoin in October 2017, the company gained a lot of attention in Turkey by enlisting Turkish celebrities in the coin’s lavish launch party, and giving away expensive cars to early adopters.

Although the precise nature of the alleged scheme seems to still be unclear, reports last month detailed that the company had promised clients a monthly income of 250 Turkish Lira for an investment of 1500 TL, and annual income of around 3000 TL, but aroused the suspicion of authorities before being shut down.

The latest report explains that Kaya and Satıroğlu were previously detained in June before being released on probation, but both were arrested again yesterday and sent to prison to await trial.

Satıroğlu in June strongly denied the claims against him remarking:

“I have not fled with the money. I will return all the money to the members if authorities unblock my bank accouns. Actually they are the ones who are involved in serious corruption.”

While fraudulent ICOs and crypto scams seem to be hitting the news on an almost weekly basis, the arrest and trial of suspects in such a high-value case is a significant development for the industry as it attempts to crack down on its criminal elements.