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Turkish cryptocurrency goes bankrupt as founder flees the country

(Bloomberg) – One of Turkey’s largest cryptocurrency exchanges said it lacked the financial strength to continue trading, leaving hundreds of thousands of investors concerned their savings had evaporated as authorities sought to locate the 27-year-old founder of the company, who fled the country Confusion reigned over the number of Thodex exchange users affected and the amount at stake. location unknown, Thodex CEO Faruk Fatih Ozer has vowed to reimburse investors and return to Turkey to face justice after he does so. The government decided to block the company’s accounts and police raided its Istanbul headquarters. Losses could reach $ 2 billion, according to the Haberturk newspaper, and an attorney for victims said the money invested by around 390,000 active users had become “unrecoverable.” . Both figures have been disputed by Ozer. About 30,000 users have been affected, he said in a statement on the company’s website Thursday. As authorities and customers tried to determine the details of what happened, a senior official from President Recep Tayyip Erdogan’s office called for rapid regulation of the crypto market. . Globally, the surge in digital token prices has been accompanied by condemnations and regulatory action after various trading platform scams. The Turkish government should take action “as soon as possible,” Cemil Ertem said, Erdogan’s senior economic advisor. Bloomberg. “Pyramid schemes are being established. Turkey will undoubtedly apply regulations in line with its economy but also following global developments. Alternative InvestmentsThodex was part of the cryptocurrency boom that attracted legions of Turks seeking to protect their savings against soaring inflation and unstable currency. Inflation hit 16.2% in March, more than triple the central bank’s 5% target. The Turkish lira has weakened 10% against the dollar this year, its ninth consecutive year of losses. The government has spent $ 165 billion on foreign exchange reserves over the past two years, Erdogan revealed on Wednesday in the report. part of a futile effort to support the national currency. Concerns about the country’s dwindling foreign exchange reserves, which are negative when money borrowed by the government from private banks through swap agreements is taken into account, fueled concern over deposits in pounds and dollars. – and pushed savers towards alternative investment vehicles. , the volume of trading in the Turkish crypto markets tripled to over $ 1.2 billion a week earlier, according to data released by, which tracks data on price, volume and price. market value in the crypto markets. This compares to an average daily trading volume in the benchmark Turkish stock market index of around $ 3.1 billion. “You can set up a crypto exchange with only 50,000 lire (about $ 6,000) of capital,” said Oguz Evren Kilic, an attorney representing Thodex users. by telephone. “There is a huge regulatory gap in this area.” Ozer did not answer several calls on his cell phone. The company’s call center also did not answer calls. Bedirhan Oguz Basibuyuk, the lawyer for Thodex, told Bloomberg he did not know where Ozer was but was not in Turkey. Demiroren news agency reported that he fled to Albania on Tuesday, posting what he said was a photo of him at Istanbul airport Dogecoin Campaign Last month, Thodex launched a campaign to raise membership by offering millions of free Dogecoins to new registrants. Its website says 4 million coins have been distributed, although many have taken to social media to complain that they never received them. “I was born as one of three siblings to an official,” Ozer said in his statement, adding that he is a high school dropout. As the company struggled financially, he said he was considering committing suicide or surrendering to authorities, but those two options meant clients’ assets would never be recovered. my debts to you, ”he said. “The day I pay off all my debt, I will return to my country and deliver myself to justice.” (Updates with new lede, government agencies action, details throughout.) For more articles like this, please visit us on now to stay ahead of the game thanks to the source most reliable business information. © 2021 Bloomberg LP

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