Turkish Minute

Turkish crypto founder flees with reported $2 billion

Faruk Fatih Özer

Turkish prosecutors on Thursday opened an investigation after the İstanbul-based founder of a cryptocurrency exchange shut down his site and fled the country with a reported $2 billion in investors’ assets, Agence France-Presse reported.

The Thodex website went dark after posting a mysterious message saying it was suspending trading for five days on Wednesday because of an unspecified outside investment.

Turkish security officials then released a photo of Thodex founder Faruk Fatih Özer going through passport control at İstanbul Airport on his way to an unspecified location.

Local media reports said Özer — reported to be either 27 or 28 years old — had flown either to Albania or Thailand.

HaberTürk and other media said Thodex shut down after running a promotional campaign that sold Dogecoins at a big rebate — but did not allow investors to sell.

Reports said the website and the entire exchange had shut down while holding at least $2 billion from 391,000 investors.

“The victims are panicked,” investors’ lawyer Oğuz Evren Kılıç was quoted as saying by HaberTürk.

“They are lodging complaints at prosecutors’ offices in the cities they reside.”

Prosecutors launched an investigation into the businessman on charges of “aggravated fraud and founding a criminal organization,” the private DHA news agency said.

Thodex has launched aggressive campaigns to lure investors.

It had first pledged to distribute luxury cars through a flashy advertising campaign featuring famous Turkish models.

The platform then launched its Dogecoin drive.

The cryptocurrency is getting particularly popular among Turks who are looking to preserve their saving in the middle of a sharp decline in the value of the local lira.

The Turkish crypto market remains unregulated despite growing skepticism from President Recep Tayyip Erdoğan’s government about the safety and use of digital currencies.

The Turkish central bank has decided to ban the use of crypto currencies in payments for goods and services starting from April 30.

It warned that cryptos “entail significant risks” because the market is volatile and lacks oversight.

“Wallets can be stolen or used unlawfully without the authorization of their holders,” the central banks warned last week.

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