Cryptocurrency: Thodex Exchange CEO Runs Off With $2B
https://cryptopotato.com/ceo-of-a-turkish-crypto-exchange-thodex-reportedly-... Not your keys, Not your coins. Develop, deploy, and use distributed cross-coin DEX. Dozens Arrested After CEO Of Turkish Crypto Exchange Flees With $2 Billion Turkish authorities have detained 62 people over alleged links to the Istanbul-based cryptocurrency exchange Thodex after its founder fled with a reported $2 billion in investors' assets, Turkish media reported. The suspects were apprehended in raids carried out in eight cities including Istanbul, Anadolu Agency reported on Friday. Police issued arrest warrants for 16 other people. The arrests come after nearly 400,000 users of a Turkish cryptocurrency exchange were left out of their accounts without being able to withdraw their funds. The platform’s website has been down for several days, while reports suggest its CEO has already fled the country with up to $2 billion. Bloomberg reported that Thodex, a Turkey-based crypto exchange, has ceased trading, citing an “unspecified partnership transaction.” The trading platform, founded in 2017, issued a statement explaining that all services will remain shut down for about five working days. However, the message reassured customers that they shouldn’t worry about their funds. In retrospect, they should. Approximately at the same time, though, users started to complain about their inability to access their own assets. As Crypto Potato notes, some took it to Twitter to complain about losing much of their net worth. A local #Crypto exchange where I'd ~20% of my entire trading capital got rug pulled -20 days no withdrawal (fiat & crypto) -Then the website went offline -Then the CEO run abroad I'm not broke, but it hurts... Alot It sucks, Even when u deal with regulated exchanges#Thodex — Feras_Crypto (will Never DM you First) (@FeraSY1) April 21, 2021 He wasn't alone: on Thursday, hundreds of thousands of users were unable to get access to their digital wallets. "We have started the legal procedures and lodged a complaint at the prosecutor's office," a lawyer for some investors said. Prosecutors were investigating the businessman on charges of "aggravated fraud and founding a criminal organisation". ÖNEMLİ DUYURU pic.twitter.com/3aBeJjFSYQ — THODEX (@thodexofficial) April 22, 2021 According to subsequent coverage the exchange’s chief executive officer and founder, Faruk Fatih Ozer had fled the country. Following news of Ozer’s alleged escape from Turkey, users of the local exchange hired a law firm to file a complaint against Thodex. Oguz Evren Kilic, representing an unspecified number of Thodex customers, confirmed the development, saying, “we have filed a legal complaint on Wednesday.” He speculated that the funds on the Turkish exchange could be worth “hundreds of millions of dollars,” as the exchange had 391,000 users. According to another report, Thodex’s CEO and founder has run away in Thailand with an estimated amount of roughly $2 billion. Overnight, Turkish security officials released a photo of Thodex founder Faruk Fatih Ozer going through passport control at Istanbul Airport on his way to Albania. Turkish security officials released a photo of Thodex founder Faruk Fatih Ozer going through passport control at Istanbul airport on April 22, 2021. On Friday, Interior Minister Suleyman Soylu made a phone call to his Albanian counterpart to request Ozer be captured and repatriated. At the same time, Turkish police raided the company's headquarters on the Asian side of Istanbul and seized computers and digital materials, press reports revealed. Turkish authorities also started procedures to issue an international warrant to arrest and extradite the missing founder of a cryptocurrency exchange, Anadolu Agency reported. In a message on the company's Twitter account, Ozer said he was abroad for meetings with foreign investors and would return home "in a few days and cooperate with judicial authorities so that the truth can come out". Subsequent updates indicated that this was a lie. In recent months, a growing numbers of Turks turned to cryptocurrency in a bid to shield their savings in the face of a sharp decline in the value of the Turkish lira and high inflation. The Turkish crypto market remains unregulated despite growing scepticism from President Recep Tayyip Erdogan's government about its safety. Last week, Turkish authorities took a step to regulating the cryptocurrency industry, and as we reported last week, Turkey officially banned users from using cryptos as payment instruments starting April 30th. The government spent a massive $165 billion in foreign-exchange reserves over the past two years, effectively leaving its central bank without reserves Erdogan revealed on Wednesday, part of a futile effort to prop up the national currency. Concern about the country’s dwindling foreign-exchange reserves, which are negative when money borrowed by the government from private banks via swap agreements are factored in, has fueled concern about both lira and dollar deposits -- and pushed savers into alternative investment vehicles. Last Friday, the volume of trade in Turkish crypto markets tripled to over $1.2 billion from a week earlier, according to data published by coingecko.com, which tracks data on price, volume and market value on crypto markets. That compares with an average daily trading volume in the Turkish stock market’s benchmark index of about $3.1 billion. “One can establish a crypto exchange with just 50,000 liras (about $6,000) in capital,” Oguz Evren Kilic, a lawyer representing Thodex users, said by phone. “There’s a huge regulatory gap in this field.” Meanwhile, as Bloomberg reports, last month Thodex initiated a campaign to boost membership by offering millions of free Dogecoins to new registrants. Its website says 4 million of the coins were distributed, though many people have taken to social media to complain they never received them. In the latest development in this bizarre saga, in a statement published from an unknown location, Thodex CEO Faruk Fatih Ozer promised to repay investors and to return to Turkey to face justice after he did. “I was born as one of the three siblings of a civil servant,” Ozer said in his statement, adding that he’s a high-school dropout. As the company ran into financial trouble, he said he thought about either committing suicide or giving himself up to authorities, but both of those options meant clients’ assets would never be retrieved. “So I decided to stay alive and fight, work and repay my debts to you,” he said. “The day I repay all my debt, I will return to my country and give myself in to justice.” Narrator: "he won't return."
https://www.reddit.com/r/Bitcoin/comments/mve36j/if_a_government_like_turkey... If a government dictates what medium of exchange of value you're allowed to use... it's time to change your government, not your currency. https://www.reddit.com/r/Bitcoin/comments/mry9h3/turkey_we_will_witness_the_... We all will be great witnesses of how a corrupt government fails at trying to ban the most "unbannable" asset in the world. "Turkey is attempting to preserve their monopoly over the money supply. They simply feel threatened by cryptos use as a currency. The reason is simple: crypto is potentially better than their fiat. ... It takes away the governments ability... to inflate, devalue, and demonetize. Turkey banning crypto is simply proof that you need crypto." "This is another step closer to me being able to buy a $1million Lira bill on eBay after their currency collapses. Move over Yugoslavia and Zimbabwe" "Very bullish" https://cointelegraph.com/news/four-arrested-after-turkish-exchange-vebitcoi... https://cointelegraph.com/news/bitcoin-caught-in-the-crossfire-as-turkish-op... https://www.theguardian.com/world/2021/apr/13/turkeys-economic-turmoil-drive... Second Turkish Crypto Exchange Collapses, Four Employees Arrested On Suspicion Of Fraud Just days after major Turkish Crypto exchange Thodex collapsed, its CEO fled with a rumored $2 billion (and was reportedly detained) and dozens of people were arrested, Turkey’s cryptocurrency investors were dealt another blow as second big exchange collapsed. In a statement posted late Friday on its website, Vebitcoin said it halted operations citing deteriorating financial conditions claiming that unspecified financial strain led to the decision — possibly caused by an unusually high number of withdrawals leading up to Turkey’s forthcoming cryptocurrency ban, according to CoinTelegraph. “We have decided to cease our activities in order to fulfill all regulations and claims,” the announcement read in part. Demiroren News Agency said its Chief Executive Ilker Bas and three other employees have been detained on Saturday. The Financial Crimes Investigation Board has blocked Vebitcoin’s accounts and opened a probe. Vebitcoin is - or rather was - Turkey’s fourth biggest exchange with close to $60 million in daily volumes, according to CoinGecko.com which tracks data on price, volume and market value on crypto markets. More than half of this volume came from Bitcoin, which dropped 19% this week. On Saturday morning, Muğla chief public prosecutor Mehmet Nadir Yağcı announced in a statement to local media that four employees have been detained by law enforcement following allegations of fraud. "Following the search and seizure operations carried out at the company headquarters and at some addresses, 4 people, who are company directors and employees, were detained. The investigation carried out by the Directorate of Cyber Crimes Branch of the Muğla Police Department is carried out in a multifaceted and meticulous manner." The collapse of Vebitcoin comes days after Thodex halted operations and its 27-year-old founder fled to Albania. Thodex had about 390,000 users according to a lawyer for the victims and losses could be as high as $2 billion, according to Turkey’s Haberturk newspaper. Police subsequently issued upwards of 75 arrest warrants and detained 62 in connection to a possible exit scam. This week's rout marks the worst period for Bitcoin since it tumbled amid a wider slump in risk assets at the end of February with bitcoin sliding as low as $48,000 late on Sunday, amid broader weakness in the entire crypto space. The two exchanges were part of the cryptocurrency boom that had drawn in legions of Turks seeking to protect their savings from rampant inflation and the collapsing Turkish currency. Turkish inflation hit 16.2% in March, more than three times the central bank’s target, and the lira has weakened more than 11% against the dollar this year -- its ninth consecutive year of losses - making it the year's worst performing major currency. The boom in Turkish crypto trading which saw daily volume on local crypto markets close to $2 billion for Friday, according to data from CoinGecko.com, regulators have come knocking. In early April, Turkey’s Central Bank has banned cryptocurrencies as a form of payment from April 30, and the country has prohibited payment and electronic money institutions from mediating money transfers to cryptocurrency platforms. Central Bank chief Sahap Kavcioglu said more regulations are in the pipeline in a televised interview on Friday. “We are working on regulations in terms of cryptocurrency,” he said. “There are disturbing money outflows to outside of Turkey via cryptocurrencies.” Turkey's crypto ban has become a hot-button issue, as opposition leaders have voiced support for crypto.
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