Turkish Crypto Exchange Thodex Precipitously Halted Trading, Customers Fear a Rug Pull

Thodex customers are fearing a billion-dollar rug pull as the Turkish crypto exchange abruptly halted trading on its platform. Earlier this morning, the trading on the Turkish cryptocurrency exchange Thodex was halted without any prior notice to its customers ultimately locking up the funds of its over 391k active traders.

Thodex Turkish Crypto Exchange Abruptly Halts Trading

Since the launch of the crypto exchange platform based in Turkey in the year 2017, Thodex has never reported any such case.

However, in a statement shared by the famous crypto exchange on Twitter, it was revealed that in a citation that an unspecified outside investment has been made that would require the suspension of trading on the platform for 4-5 days.

In a legal complaint filed against the Turkish crypto exchange, Oğuz Evren Kılıç, a lawyer in the Turkish capital Ankara, mentioned that the halting, “may well be a scam.”

As per the police records shared with the lawyer, Faruk Fatih Özer, the CEO of the Turkish crypto exchange left the country last evening. In addition to this, the CEO of Thodex deleted all his social media accounts, followed by the cutting off of all the customer support of the exchange.

In the estimations made by the Turkish lawyer, around $2-10 billion funds are being locked up in the accounts registered with the exchange, a clear picture of which will be visible over the coming days.

Apart from this, the initial investigations have revealed that there is some money in the bank accounts of the exchange and its owners.

Kılıç went on to say:

“But we do not know the exact amount and whether that will be enough for everyone.”

Just prior to the Dogecoin trend, Thodex ran a greatly successful marketing campaign between March 15 and April 15 and rewarded every new sign-up with 150 DOGE coins.

This lead to a rush of thousands of new customers to the exchange ultimately increasing the trading volume of the exchange to record $1.37 billion.

Turkish Government on Cryptocurrencies

The Turkish government has not released any public statements regarding the Thodex crypto exchange.

Mustafa Varank, the Minister of Industry and Technology released a statement last month that read:

“cryptocurrency is ripe for fraud, and that the government wouldn’t give free rein to the cryptocurrency space that has such high risks.”

This incident, however, is really not a decent look for crypto in the eyes of a decidedly dubious Turkish government.


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