TURKEY DETAINS 62 OVER ALLEGED $2B THODEX CRYPTO EXCHANGE FRAUD

Fri 23 April 2021:

Turkish police on Friday have detained 62 people as they continue to investigate into the cryptocurrency trading platform Thodex, which is accused of defrauding investors after thousands of users filed criminal complaints saying they had been scammed.

An Anadolu Agency (AA) report said prosecutors issued detention warrants for 16 more people linked to Thodex and the current detentions took place in eight provinces.

The Ministry of Justice Friday also issued an international Red Notice for the founder and CEO of Thodex, Fatih Faruk Özer, and initiated the procedure for his extradition from Albania, to where he was said to have fled.

The Thodex cryptocurrency trading platform, which had been handling daily cryptocurrency trade worth hundreds of millions of dollars, said on its website on Thursday it would be closed for four to five days due to a sale process.

Istanbul’s chief prosecutor’s office yesterday announced it was opening a probe into the case following complaints from Thodex users who had lost access to their assets. Rumors have since been rife that Thodex owner Faruk Fatih Ozer has fled the country with the intent of defrauding users of their estimated $2 billion total in crypto.

Security sources say Thodex founder Faruk Fatih Ozer is in Albania, according to Turkish television.

Whilst confirming that he had indeed left Turkey for Albania, according to AP, Ozer has denied all allegations and maintains he left for legitimate business-related reasons, ostensibly to meet foreign investors.

After preliminary assessments by the police showed Özer had left the country earlier this week, he confirmed this but claimed the trip was to meet foreign investors.

Turkish security officials then released a photo of the Thodex founder going through passport control at Istanbul Airport on his way to an undisclosed location. Security sources cited by Turkish broadcaster HaberTürk said earlier he was in Albania’s Tiran.

Turkey’s Financial Crimes Investigation Board (MASAK) blocked the company’s accounts on Thursday and began an investigation.

The 24-hour trading volume on Thodex was $538 million on its last trading day, according to Coinmarketcap.

Last week, the Central Bank of the Republic of Turkey (CBRT) announced that it was banning the use of cryptocurrencies for the payment of goods, arguing that they presented “irrevocable” risks.

Many in Turkey have turned to cryptocurrencies to shield their savings from rising inflation and the currency slump, while measures similar to those of the CBRT are on the agenda of several countries around the world.