Turkish Crypto Exchange THODEX Shuts Down, Suspected of Exit Scam

THODEX crypto exchange has been accused of pulling an exit scam after abruptly suspending trading on Wednesday after reaching $1.3 billion daily trading volumes.

April 22, 2021 | AtoZ MarketsTurkish cryptocurrency exchange THODEX has been accused of pulling an exit scam with investment capitals garnered from Turkey residents. On the exchange's Twitter page, it is reported that the marketplace has stopped all operations due to an unspecified partnership transaction.

At the time of this writing, the site gives error 1020.

THODEX Suspected of Exit Scam

Source: thodex.com

Some users who visited the company's office reported that the project team now works from home. Whether the move is related to the growing incidence of coronavirus in Turkey remains unknown. Another part of the users accused the management of the exchange of incompetence due to the closure of access without prior notice.

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Is Turkish Crypto Exchange THODEX Scam?

Lawyer Ouz Evren Kilich, who filed a lawsuit against the crypto exchange, which has been operating since 2017, said that the site's behavior was more like an exit scam.

Read also: Bitisis Crypto Exchange Shuts Down Amid Exit Scam Claims

“[It] could very well be a scam,” he told Decrypt.

The exchange itself claims that it can take up to five working days to resume work. It should be noted that the head of the THODEX exchange Farouk Fatih Özer had flown out of the country from Istanbul Airport on Tuesday afternoon, the same day the exchange stopped trading. 

He is said to have fled to Thailand with $2 billion worth of digital assets. Özer also deleted all his social media accounts, thus fueling the speculations of the fraud allegations. 

Read also: Binance Recovers $344,000 From DeFi Exit Scam Project Wine Swap

“Could this be called the Turkish version of Mt.Gox?” Kilic wrote on his Twitter page.

Loud DOGE Campaign

From mid-March to April 15, THODEX ran a vigorous DOGE marketing campaign. The exchange rewarded 150 new registered DOGEs.

According to media reports, trading volume on THODEX soared to $1.37 billion last weekend. It is reported that the exchange has been selling DOGE at a fixed rate of $ 0.11 since April 14, although the price of DOGE on other exchanges reached $0.42 on April 16.

The THODEX exit scam is suspected a week after Turkey imposed restrictions on the crypto market.

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