- Turkish crypto exchange founder is under custody in Albania awaiting legal proceedings.
- Turkish Ministry of Internal Affairs and the Albanian government are working together on the defunct crypto exchange case.
- Thodex had suddenly frozen all trading on its platform in April of 2021, prior to the founder’s disappearance.
Faruk Faith Ozer, founder of the obsolete Turkish crypto exchange, Thodex, has been arrested and detained in custody in Albania via an operation conducted at 5:30 AM UTC on August 30, 2022, in Albania’s capital city, Tirana.
While the Turkish Ministry of Internal Affairs and the Albanian government are working on the case collaboratively, Ozer is subject to prior questioning and legal proceedings by the local Albanian authorities, after which the Turkish embassy will be notified and Ozer will be deported to Turkey.
The crypto exchange founder disappeared shortly after the Thodex scandal. The platform abruptly paused all trading activities and withdrawals in April 2021. Upon police interference, Thodex went silent in response, while Ozer was reportedly missing.
Potential connections to the platform and the founder were detained soon after by the Turkish government. A total of 62 individuals were arrested, who confirmed that Ozer had fled to Albania.
In total, Turkey observed a fall of $200,000 million in investments and over 391,000 crypto investors in the Thodex scandal. Hence, the authorities were forced to implement new crypto regulations to protect their citizens. One of the regulations also bans crypto payment methods.
However, this is not the first fraudulent crypto-related platform scandal in 2022. Singapore-based Three Arrows Capital also recently filed for bankruptcy, and while its founders have disappeared, the firm owes billions to several companies.
Terraform Labs also faced an investigation due to the collapse of the LUNA token. The founder has since been silent and is under significant scrutiny with a travel ban imposed on all Terraform employees by South Korean regulators.
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