Thodex CEO Denies Fraud Allegations Saying Funds Are Safe: Report

Thodex CEO Fatih Faruk Ozer denied all fraud allegations regarding the exchange and said that the users’ funds are safe. However, he vanished overnight so we are still unable to confirm what exactly is going on but let’s read the update in our latest crypto news today.

The Turkish crypto exchange Thodex CEO says his company had to stop all trading because it suffered cyberattacks but the original deposits are safe. The police also arrested 62 people with the government preparing to have him extradited from Albania. The CEO of the exchange halted trading on Wednesday and vanished but did manage to deny all allegations of a rug-pull.

The real reason for halting the trading and preventing withdrawals, according to the CEO was to investigate the anomalies in the 30,000 customer accounts that were discovered during a three-month investment talk but he didn’t say why these records were suspicious. Ozer added that the company is still recovering from the cyberattack back in 2018 that drained 25 million Turkish Liras from the platform. The company’s investigation completed and found evidence of further cyberattacks.

This morning, the Turkish police detained 62 people and seized the company’s computers, freezing the bank accounts, and the government now preparing to have Ozer extradited from Albania where he fled. Despite all of the developments, no customers will be affected according to Ozer who claimed that the company holds funds that are equivalent to customers’ original deposits on the platform.

Mertcan Bayraktr who represents investors, including one person that has about $150K in BTC locked up on the exchange, said that Ozer owes customers profits that were made while trading crypto. Ozer left the country the night before the exchange was shut down and said that he will give back the funds upon his arrival in Turkey. Bayraktar said that there’s no reason to wait:

“He’ll be detained upon arrival anyway.”

KAan Savukduran who is a trader with $12,000 in DOGE that is now locked up in the exchange, said:

“They didn’t let us withdraw funds for a week, and they never provided customer support. They first halted trading citing six-hour maintenance, which they extended to five days citing an outside investment. Don’t I own the coins? I don’t get it!”

Bayraktar expects that the lawsuit against Ozer will take a long time because crypto laws in Turkey are not even rumored about:

“It’s more like black—there’s no law governing it yet.”