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Turkish police have arrested 62 people who have been linked to the scam by one of the largest crypto exchanges in the country, Thodex. The crypto exchange seized operations, and users lost $2 billion worth of crypto.
Authorities in Turkey have detailed 62 people who were part of the largest crypto exchange scam in the country. Thodex, one of the largest crypto exchanges in Turkey, stopped all operations, including withdrawals and trading services.
In a media publication, the crypto exchange platform defrauded over 391,000 customers who lost $2 billion worth of crypto assets. Media sources in Turkey also state that the founder of the exchange platform, Fatih Ozer, has fled the country with the crypto from users. An investigation into the matter was launched after thousands of users lodging complaints after failing to access the platform.
Turkey’s New Stand on Crypto assets
After the scam by Thodex, the Central Bank of Turkey has introduced new regulations regarding crypto exchanges in the country. These regulations are set to protect investors from losing their investments after what was witnessed by Thodex.
The central bank stated that cryptocurrencies could not be used for making payments for goods and services. Furthermore, the bank added that financial institutions would no longer offer deposit and withdrawal services for crypto exchanges. This development is a significant blow for the crypto market in the country.
Crashing crypto market
The crypto market has been on a bullish trend since 2021, with the cryptocurrency market cap growing to over $2 trillion. Bitcoin, the largest cryptocurrency, recorded a 500% growth in its value for the past year. However, the market trend for the past week has threatened to halt the bullish trend of this sector.
On Friday, the crypto market cap was reduced by 10% after a price fluctuation. Bitcoin has been the hardest hit crypto after recording an 11% decline in its value within 24 hours. The market cap of Bitcoin dropped to less than $900 billion for the first time since the beginning of March.
As of writing, Bitcoin was trading at below $50000. The market dominance of this currency stands at 51%, which is the lowest record in three years. However, the Bitcoin community is optimistic that the value of this crypto will increase to above $100000.
Turkey has also recorded an increase in queries related to Bitcoin after the value of the country’s currency, Lira dropped. The Turkish Lira is facing a troubled time given that it had reduced in value by 20% within two months.