Thodex, a Turkish cryptocurrency exchange, has ceased its trading operation and went bankrupt without prior and proper notice to its customers.
In an announcement made on Twitter by the company, it explained the halting of its trading operations due to a transfer of shares to an outside investor not being completed. As an assurance, it said that its services will only be stopped for five days and that its users need not worry because their funds are safe.
The incident shocked more than 391,000 active customers who were unable to access their funds in the crypto exchange.
CEO goes missing
After customers have filed complaints alleging that millions of dollars have been stolen from their funds, Faruk Fatih Ozer, the CEO of Thodex, suddenly went missing.
The company official reportedly left the country and has deleted all his social media accounts. Customer support services were also cut by the service in light of the incident.
Police records revealed that the CEO fled after a failed attempt to settle a transfer of shares to another investor. This resulted in irretrievable funds from more than 390,000 customers. With this development, everything about Thodex remains hanging in the balance.
A potential scam
Blockchain.news cited a statement of Oğuz Evren Kılıç, the lawyer from Ankara who filed legal complaints against the exchange. He said, “this may well be a scam.”
The funds locked up in Thodex accounts are estimated to be around $2 billion to $10 billion. Investigations showed that there is some money in the bank accounts of the exchange and its customers, but the lawyer said they “don’t know the exact amount and whether that will be enough for everyone.”
Meanwhile, Bedirhan Oguz Basibuyuk, serving as legal counsel for Thodex, said the CEO had left the country because “he would have been arrested or otherwise committed suicide.”
The lawyer also admitted there was a liquidity problem with the exchange and was quoted by Blockchain.news as saying: “there was decline in Thodex’s assets. When too many users demanded their money back, the company was unable to meet those.”
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