A Turkish cryptocurrency exchange with approximately 400,000 users has been accused of provoking an exit scam. The CEO has reportedly fled Turkey and is reportedly taking $ 2 billion in customer money. Police have warrant for the CEO’s arrest and 62 people have already been arrested in connection with the case.
Crypto Exchange Accused of Exit Scam
Turkish cryptocurrency exchange Thodex is offline and its CEO is reportedly missing. Thousands of investors worry that their money has been stolen because they cannot access their accounts.
A statement on the exchange’s website indicates that the platform has been “temporarily closed” to address an “abnormal fluctuation in company accounts.”
Local media reported that Thodex founder Faruk Fatih Ozer fled the country to Albania and reportedly took $ 2 billion in investor money. Demiroren News Agency published a photo that it claims is Ozer leaving Istanbul airport.
Turkish authorities have issued an international arrest warrant against Ozer, state-run Anadolu Agency news agency reported. Interpol then issued a red warning to Ozer on Friday. The Turkish police station said the country’s interior minister and police chief spoke with their Albanian counterparts on Thursday to request Ozer’s arrest.
Thousands of users have filed complaints against Thodex saying they have been scammed. They do not have access to their accounts and are afraid that their savings are irrecoverable.
A lawyer who filed a criminal complaint against Ozer said Thodex had 400,000 users, 390,000 of which were active. However, Ozer disagreed, claiming that only 30,000 users have been affected by the situation and reports of about $ 2 billion in losses are “baseless.”
Police searched the company’s offices in Istanbul and seized materials on Thursday. Arrest warrants have been issued against 78 suspects and police have so far detained 62 people in eight cities, including Istanbul, in connection with the case.
Cryptocurrencies have recently gained popularity among some Turkish citizens who want to protect their savings from rising inflation and falling lira. Turkey’s central bank has recently banned the use of cryptocurrencies as a means of payment. President Recep Tayyip Erdogan has called for rapid regulation of cryptocurrencies and warns of the increasing number of pyramid schemes in the crypto markets.
Do you think Thodex’s crypto exchange is pulling an exit scam? Let us know in the comments below.
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