The crypto market has been no stranger to scams and frauds, with numerous cases reported globally. One such case is that of Thodex, a Turkish crypto exchange that shut down in April 2021, leaving around 400K users high and dry with $2.6 billion worth of crypto funds missing. The founder of the exchange, Faruk Fatih Özer, was recently extradited to Turkey after being arrested in Albania.
Thodex was one of the largest crypto exchanges in Turkey, and its sudden disappearance shocked the users. The company halted all transactions citing an unspecified partnership offer, and soon after, its executives started deactivating their social media profiles. The platform’s customer support group also became inaccessible, leaving users with no option to recover their funds.
The Founder’s Disappearance
The founder and CEO, Faruk Fatih Özer, reportedly fled to Albania after shutting down his Twitter account. He managed to stay undercover for over a year, but law enforcement agents in the Elbasan finally detected his location and arrested him. Interpol also issued a Red Notice against Özer for his capture.
Özer is now facing charges of fraud and operating a criminal organization. The authorities had also detained 62 people associated with the Thodex exit scam, and a Turkish court jailed six people, including two siblings of the CEO and four senior employees of the company.
Lessons to Learn from the Thodex Exit Scam
The Thodex exit scam reminds investors to be vigilant and do their due diligence before investing in any crypto exchange. It is essential to check the credibility and reputation of the exchange, review its security protocols, and read reviews from other users before making any investment.
Moreover, investors must not keep all their eggs in one basket. Diversifying investments across various exchanges and cryptocurrencies can reduce the risk of losing all the funds in case of an exit scam or hack.
The Thodex exit scam also highlights the need for regulations and oversight in the crypto market. The lack of regulations has made the crypto market a breeding ground for scams and frauds, leading to massive losses for investors. Governments and regulatory bodies must work towards creating a framework to protect investors and prevent such scams from happening in the future.