Exit scams have been seen in the cryptocurrency world before, and Turkish exchange Thodex may be the next to pull one-off. Since it unexpectedly suspended trade and disabled all withdrawals, the exchange made headlines. Customers of Thodex claim the firm attempted an escape scam as a result.
According to a post by local news outlet Anadolu, Turkish law enforcement has arrested 62 suspects in this case as part of a continuing fraud probe. Prosecutors have also released warrants for the arrest of 78 people who were found to be in touch with Thodex, of whom 62 have been arrested so far across eight provinces, according to the article.
The cryptocurrency community has seen multiple exit scams and Turkish exchange Thodex could be next in line to pull off such an endeavour. The exchange made headlines after it abruptly halted trading and disabled all withdrawals. As such, Thodex customers believe the company might have tried to exit the scam.
The probe was initiated on Thursday after Ouz Evren Klç, a lawyer from Ankara, Turkey, lodged a legal complaint against the exchange and its manager Fatih Faruk Oze. “Aggravated theft,” according to the prosecutor.
Ceran and Turkish police sources also state that zer fled the country after stealing millions of dollars and fled to Tirana, Albania. The exchange’s customer service has since been terminated, and the notorious operator has removed all of his social media pages.
This event has impacted about 390,000 active traders, who are unable to withdraw their assets.
Thordex’s website is still offline, and the firm’s last announcement was issued earlier this week, stating that trade had been suspended due to an undisclosed outside investment to “serve clients better” and that the company will be closed for five working days.
Meanwhile, Turkey’s financial fraud investigation commission, MASAK, is said to have frozen all of Thodex’s bank accounts.
A founder’s strategy
Before leaving the region, Ozer reportedly considered surrendering to authorities or committing suicide, according to Bloomberg. Any of these options, though, would mean that the assets of the clients would not be recovered.
“So I decided to stay alive and fight, work, and repay my debts to you,” . “The day I repay all my debt, I will return to my country and give myself into justice.”
The projected value of the funds locked up in the exchange is between $2 and $10 billion. According to the investigation conducted by the prosecutor’s office inquiry, “some money in the bank accounts of the exchange and its owners.”