Turkish crypto exchange Thodex accused of fraud: report

Hacks • April 22, 2021, 7:10AM EDT
Shutterstock/kbphotodesign

Customers of a Turkish crypto exchange named Thodex have filed a complaint against the company alleging fraud.

According to a Bloomberg report, a lawyer representing the customers – who had earlier complained about being unable to access their funds – alleges that Thodex’s founder and CEO Faruk Fatih Ozer has fled the country and that hundreds of millions of dollars may have been stolen.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The lawyer, Oguz Evren Kilic, told Bloomberg he had filed a legal complaint on April 21.

Thodex, which launched in 2017, abruptly halted trading yesterday, leaving its 390,000 active users stranded. According to reports, a statement on its website said the exchange had temporary closed to allow outside investment to “serve clients better,” and that it would remain closed for five working days. Exact details of the investment were not specified, however, and the Thodex website is currently inactive.

As to the whereabouts of Ozer, Demiroren News Agency has claimed in a report that he flew to Tirana, Albania, on April 20.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.