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Turkish Crypto Exchange CEO And $2 Billion Vanish Amid Regulatory Crackdown

After the Turkish crypto exchange “Thodex” went offline last Wednesday, thousands of investors have been left unable to access their digital wallets. In a statement appearing on the exchange’s website the platform justifies it’s “temporarily” shutdown as being due to “abnormal fluctuation in the company accounts.”

According to reports, the exchanges’ founder Faruk Fatih Ozer now faces an international warrant after allegedly fleeing the country with $2 billion of users’ funds.

Friday, the Turkish police put 62 suspects in custody, while over 300.000 customers are fearing the loss of all their assets in what might be one of the largest frauds in the country's history.

In recent months, Turks have increasingly turned to crypto as a viable investment alternative in high inflation settings with the Turkish lira depreciating. But the recent developments spur concerns over the markets’ security.

Just recently, the Turkish central bank has announced plans to ban the use of crypto currencies by 30th of April, due to ambiguity in the market and the emergence of pyramid schemes.

What do you think, do these concerns justify regulatory crackdowns or will cryptocurrencies prevail in their current form?


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