Thodex Crypto Exchange Fraud Investigation Intensifies, Detention Period Extended For Suspects

By Prashant Jha
Published April 28, 2021 Updated April 28, 2021
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Thodex Crypto Exchange Fraud Investigation Intensifies, Detention Period Extended For Suspects

By Prashant Jha
Published April 28, 2021 Updated April 28, 2021

The fraud investigation into an alleged $2 billion fraud committed by one of the largest Turkish exchange Thodex has intensified as the investigation agency bas extended the custody of 8 arrested accused that include the Thodex founder Faruk Fatih Özer’s sister and brother. Another 60 arrested suspects were released by an Istanbul court.

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The main website of the said crypto exchange became defunct on Monday after hundreds of users started complaining about not able to access their funds. It was later revealed that the founder has got away with nearly $2 billion of 400,000 user’s funds while assuring that the exchange complications are primarily due to technical changes in the platform owing to foreign investment.

Ozer in a statement released yesterday claimed that only 31,000 of the exchange users are liable for a refund while denying all claims of fraud.

Turkish Central Bank Looking to Offer Direct Crypto Custody In Wake of Fraud

Turkey was not very keen on cryptocurrencies and the central bank had even proposed a ban on crypto trading amid surging popularity. However, the growing inflation rate made crypto even more popular in the country as seven-week crypto trading volumes hit 218 billion liras ($27 billion), up from just over 7 billion liras in the same period a year earlier.

The Turkish Central Bank is now reportedly considering offering direct crypto custody services themselves in the wake of the recent crypto exit scams by prominent crypto exchanges. This marks a great turn of events for the country that went from banning crypto to offering direct custody services.

Many developing nations reeling from inflation and depleting economy are now looking to adopt cryptocurrencies to get past the mounting financial crisis. Iran is facing several trade sanctions as well as growing inflation has tuned to use Bitcoin mined locally for imports to bypass the US sanctions.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1004 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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