A Turkish cryptocurrency exchange with around 400,000 users was accused of triggering an exit fraud. The CEO has reportedly fled Turkey and allegedly took away $ 2 billion in client funds. The police have an arrest warrant for the CEO and 62 people have already been arrested in connection with the case.
Crypto Exchange accused of ending fraud
Turkish cryptocurrency exchange Thodex is offline and its CEO has reportedly gone missing. Thousands of investors fear that their money has been stolen because they cannot access their accounts.
A statement on the exchange’s website states that the platform is “temporarily closed” in order to correct an “abnormal fluctuation in company accounts”.
Local media reported that Thodex founder Faruk Fatih Ozer fled the country to Albania and allegedly took away $ 2 billion in investor money. Demiroren news agency published a photo claiming that Ozer left Istanbul Airport.
The Turkish authorities have issued an international arrest warrant for Ozer, the state news agency Anadolu Agency reported. Interpol then issued a red notice for Ozer on Friday. Turkish police headquarters said the country’s interior minister and chief of police spoke to their Albanian counterparts on Thursday to request Ozer’s arrest.
Thousands of users have filed complaints against Thodex that they have been scammed. They cannot access their accounts and fear that their savings will be irretrievable.
An attorney who filed a criminal complaint against Ozer said Thodex had 400,000 users, of whom 390,000 were active. However, Ozer disagreed, claiming that the situation only affected 30,000 users and that reports of approximately $ 2 billion in losses were “unfounded”.
Police raided the company’s Istanbul offices and seized materials on Thursday. Arrest warrants have been issued against 78 suspects and police have arrested 62 people in eight cities, including Istanbul, in connection with the case.
Cryptocurrencies have been gaining popularity recently with some Turkish citizens to protect their savings from rising inflation and falling lira. The Turkish central bank recently banned the use of cryptocurrencies as a means of payment. President Recep Tayyip Erdogan has called for rapid regulation of cryptocurrencies and warned of the increasing number of pyramid systems on the crypto markets.
Do you think Thodex Crypto Exchange is triggering an exit scam? Let us know in the comments below.
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