Cryptocurrency scam: an investigation opened in Turkey

Since Wednesday, it has been impossible for Thodex customers to withdraw their assets (illustration).

AP - Ramon Espinosa

Text by: RFI Follow

3 min

The boss of Turkish cryptocurrency platform Thodex has vanished, leaving hundreds of thousands of customers in the shackles.

An investigation has been opened for alleged embezzlement.

The damage would be estimated at $ 2 billion.  

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Where has Fatih Faruk Özer gone?

Has the boss of Thodex fled to Thailand or Albania with the $ 2 billion in assets that his platform managed so far, as the local press mentions? Authorities shared a photo of the young man, aged 27 or 28, taken while checking his passport at Istanbul's main international airport, without providing details.

On Wednesday, the platform founded in 2017, mysteriously announced the suspension of trade for " 

four or five days

 " and made its site inaccessible, triggering panic of users unable to withdraw their assets. Like so many other Turks, they turned to crypto assets as an alternative to save their savings from record inflation and the collapse of the pound. Before its site was blocked, the Thodex platform, a sort of virtual currency exchange, hosted the assets of hundreds of thousands of users for a total amount of $ 2 billion (nearly 1.7 billion euros ), several Turkish media said.

Several complaints were filed for "aggravated fraud", triggering on Thursday the opening of an investigation by the Istanbul prosecutor's office against Faruk Fatih Ozer. Faced with these accusations, Thodex broke his silence by posting on Twitter a press release bearing the signature of its leader in which he denounces a " 

smear campaign

 " and rejects " 

unfounded allegations 

".

Faruk Fatih Ozer says he has been abroad since Monday for " 

discussions with partners

 " and that he intends to return to Turkey "

 in a few days

 ".

He adds that the Thodex site was made inaccessible for maintenance operations after " 

suspicious movements were detected

 ", evoking a " 

cyber attack

 ".

Since the case broke, calls to regulate the sector have intensified in Turkey all the way to the top of the state.

Last week, the Turkish authorities had rightly decided to limit their hold by prohibiting payments in cryptocurrency.

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