Thodex Moved Bitcoin Worth $125M Using Kraken Before Shut Down

Thodex, the Turkish crypto exchange that closed in April, transacted about 5,000 Bitcoins using the US Kraken exchange. The transactions that were done between August 2020 until February 2021 amounted to approximately $125 million based on Bitcoin’s value at that time.

Reports by Whitestream, a blockchain firm based in Israel and one that has major contracts with the country’s Defense ministries, indicate the unusual activity between the two exchanges.

Thodex ‘Cashes Out’

According to the blockchain intelligence firm, it seems that the now collapsed Turkish exchange was sort of ‘cashing out’ before their exit. According to a tweet by Whitestream, the executives at Thodex may have been stealing from their customers and allegedly laundering the funds through Kraken.

Further reports indicate that a group of accounts belonging to the same people used intermediate accounts to move the Bitcoins. What seems off about the whole setup is that the majority of the coins finally landed at Kraken, which raises some red flags.

Accounts Frozen, 60 People Detained

The Turkish government arrested sixty people in relation to the scandal. It also seized the company’s computers and froze bank accounts that were operated by Thodex. The CEO, Faruk Ozer, fled to Albania before the exit, but the government is working on his arrest. Interpol has issued a red notice to the CEO. 

However, some of Ozer’s siblings and senior employees at the company were arrested in connection with the scam. Ozer has denied any fraudulent activity and blames the exit on a cyber-attack. The company collapsed with over $2 billion of customer funds since it used to process millions of dollars in daily trading activity.

Kraken is yet to comment on the matter. 

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