The founder of a popular crypto exchange in Turkey has disappeared, with media reports indicating that he has fled the country with $2 billion as roughly 300,000 frustrated users have suddenly lost access to their accounts.In Turkey, the national currency lira has been in a secular decline for nine consecutive years, urging people to take some risks in a bid to protect their savings and maybe even earn something. As a result, the recent rise of cryptocurrencies predictably attracted many investors who hoped to protect their money and possibly gain some more. But things did not go well for them as Thodex, one of the country's largest cryptocurrency exchanges, went bust.Governments cannot control cryptocurrencies. As a result, they can quickly rise to an all-time high (or rapidly drop), making them a particularly attractive investment instrument — especially for those willing to take a risk. In Turkey, anyone can establish a crypto exchange with just 50,000 liras (about $6,000 USD) in capital, reports Bloomberg. Consequently, crypto exchanges are often run by people without proper financial education that serve unqualified investors who do not understand all of the risks.Thodex was one of the largest cryptocurrency exchanges in Turkey with 700,000 users, many lured in by an introductory offer of 'millions' of free Dogecoins. Apparently, most of those Dogecoins were never distributed.To make matters worse, media reports say that as many as 391,000 users have now suddenly lost access to their accounts. Following the reports, Thodex "temporarily" closed the platform to address an "abnormal fluctuation in the company accounts."Meanwhile, Faruk Fatih Ozer, the founder of Thodex, has flown to Albania, taking $2 billion of investors' money with him, reports CNBC (citing local Turkish media). As you would expect, the Turkish Justice Ministry is seeking a so-called "red notice" with Interpol to arrest Ozer.Thodex denies all the allegations and says that the problem impacts 'only' 30,000 of its clients. The company further states that the inaccurate media reporting has ruined its reputation, making it impossible to continue operations."The allegations that [accounts of] 391,000 people disappeared after a loss of approximately $2 billion, which was [reported] to the public on 22.04.2021, are unfounded," a statement by Thodex reads. "It is necessary to make this statement in order to respond urgently to these claims that go beyond the limits of honesty and conscience."The founder of Thodex vows to return investors' money but hasn't revealed how and when he plans to do it. Meanwhile, a lawyer representing the investors said the money had become "irretrievable," according to Bloomberg
Nereus No FDIC insurance on that. If some of the victims are miners; oh dear, how sad, never mind...
aka_STEVE_bNot like this is the first time Millions upon Billions have disappeared from all the shady people involved in this "business" ....
Grey_Beard Unfortunately, a currency that is untraceable is a beacon for nefarious actors.
ty_ger07Grey_Beard Unfortunately, a currency that is untraceable is a beacon for nefarious actors.Untraceable? What are you talking about? Might want to research that.... There are very few cryptocurrencies which are untraceable, they aren't very popular, and they aren't valued very highly. The popular ones you are thinking about, and have value to steal, are traceable. But since he owned the exchange, he can more easily cover his tracks; and most likely "took the money" in fiat currency via a bank wire transfer to some scumbag bank in a country with poor regulations. In general, cryptocurrency is very traceable. It's only the bank transfer process from the exchange to your bank which determines whether or not the traceability stops or continues. Over here, we have KYC and AML laws which prevent people from transferring money to their bank account as an untraceable transaction. If you are going to point the finger at some institution as the problem, it is the scumbag banks in countries with poor regulations. There is not much you can buy with cryptocurrency at the moment, you can't eat it either, and most of them are traceable. Converting it to fiat currency and laundering it is his goal, without a doubt.
Grey_BeardIf it was “traceable” then why has none of the thefts of various coins been caught?
ty_ger07Grey_BeardIf it was “traceable” then why has none of the thefts of various coins been caught?Because they are stolen from exchanges as an inside job and then laundered using scumbag banks in unregulated countries. Didn't I already answer that question? Feel free to do some research.
HoggleIt will be interesting to see what can be done since the question will also be the laws that are broken. In some countries they have no way to charge a crime for digital thief. It also creates a recognition of the value of digital currency. It would be different if it wasn’t a crypto currency since real recognized money has recognized value but for non recognized currency the value of the thief is nothing.
Grey_BeardSo let me get this straight. It’s traceable but people can cover their tracks. Seems that it untraceable to me. It is either traceable or it’s not. Very simple concept. It does not fit into that then it’s not the right answer. 2+2 does equal 4.
Grey_BeardHoggleIt will be interesting to see what can be done since the question will also be the laws that are broken. In some countries they have no way to charge a crime for digital thief. It also creates a recognition of the value of digital currency. It would be different if it wasn’t a crypto currency since real recognized money has recognized value but for non recognized currency the value of the thief is nothing.The economy and assets of a country support that country’s currency. That is how it gets value. People know the note will be paid by the issuing country. Not sure how that works with this stuff. Seems a decentralized process is rife with problems and much risk. At least I know T-bills will be paid at the date of maturity. Cannot say that for this stuff.