With the huge amounts of money involved in crypto, and its hugely unregulated nature, theft is a part of the game. The latest of such an incident involves Thodex, the latest crypto exchange in Turkey. The exchange went offline yesterday, leading to fears that they had defrauded investors. This has prompted investors to seek legal action in a bid to protect their investments.
According to a lawyer representing the exchange’s clients, the founder of Thodex had run away from Turkey in a clear indication that clients had been defrauded. Since the exchange went offline, clients have been unable to withdraw their assets that are projected to be in the hundreds of millions of dollars.
Thodex started operations in 2017, and as of yesterday, had 390k active clients. When it first went offline, the exchange announced that it temporarily shut down while seeking new investments to serve its clients much better. However, with the founder’s fleeing, it is evident that what is happening is a clear case of theft. Reports by Demiroren News Agency indicate that Thodex founder could be hiding somewhere in Tirana, Albania.
If it is a case of theft, then it would be a huge blow to Turkish crypto traders who are already dealing with harsh government regulations. Recently, the country’s government announced a ban on crypto on-ramping using payment processors. This left traders with the option of depositing fiat into exchanges via wire transfer, a process that is quite tedious and may lead to missed trading opportunities.