A week after the Turkish central bank announced a ban on the use of cryptocurrencies to pay for goods and services effective from April 30, 2021, cryptocurrency investors are in shock and confusion after the largest crypto exchange in the country, Thodex, closed site and its founder fled the country.

Although there was confusion as to the number of investors affected, Haberturk newspaper and the victims’ lawyer pinted out that there were about 390,000 active traders on the platform at the time of the closing of the exchange’s site.

In a statement released from an unknown location, the 27-year-old CEO of Thodex promised to repay investors and even return to face justice in Turkey.

 “So I decided to stay alive and fight, work and repay my debts to you,” he said. “The day I repay all my debt, I will return to my country and give myself into justice.”

However, police have already raided the exchange’s head office and the government has blocked the exchange’s bank accounts as fears run high of investors losing up to $2billion.

Immediately after the incident, Cemil Ertem, a senior economic advisor of the Turkish president, called for the Turkish government to take action through an interview on Bloomberg.

“Pyramid schemes are being established. Turkey will undoubtedly carry out a regulation that’s in line with its economy but also by following global developments.”

Well-orchestrated fraud

Before being shut down, Thodex had indicated on its official website that it would be closing for about four or five days because of undisclosed outside investment.

However, later, traders were unable to access their account and could not withdraw their deposited funds.

It is also interesting to note that this took place a month after carrying out a promotional campaign that sold Dogecoins at a rebate without allowing investors to sell the Dogecoins. According to the exchange’s website, about 4 million Dogecoins were distributed although there are claims from many people in the media that they did not receive the distributed Dogecoins.

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