Lawsuits against Thodex platform amid crypto fraud

Thousands of lawsuits have been filed against the Thodex cryptocurrency trading platform by Turkish citizens who could not access their accounts or withdraw their money, one of their lawyers said today.


The company posted an announcement on its website, saying that it will be closed for 4 to 5 days, because it is in the process of selling. Users, however, expressed concern on Twitter that they may have fallen victim to fraud, with their comments being widely circulated by Turkish media.


Thodex said on its website that media reports were not true. “World-renowned banks and investment funds, whose names we will publicise when the process for the agreement is finished, wish to invest in our company and have proposed a long-term partnership. “In order to complete this process, the transactions must be stopped and the sale process must be completed“, the announcement reads.


Last week, Turkey banned the use of crypto assets for payments – one of the factors that led to a 14% drop in the bitcoin price over the weekend. The Turkish central bank cited “irreversible” losses and trading risks as reasons for the ban.


Oguz lawyer Evren Kilic said he received an order from users on Wednesday and that all of them had filed a lawsuit on behalf of several people in Ankara. He added that thousands of others across the country have filed lawsuits. “It is not clear where this is headed. “There are thousands of lawsuits filed by many parts of Turkey,” he told Reuters, adding that the platform has 400.000 users, of which 390.000 are active.


Kilic said a preliminary police investigation showed that Thodex CEO Fatih Ozer had left the country from Constantinople airport on Tuesday afternoon. “We will immediately file a lawsuit in court for consumer disputes. “The two proceedings – lawsuits and lawsuits – will proceed at the same time,” he said.


A prosecutor’s office in Constantinople said it had launched an investigation into Thodex over allegations that the platform had led to “grief for many citizens”. Users complained that Ozer may have taken with them their money when he left the country.


The lawyer stated concerns about user fraud could have been avoided with regulations, but the type bans imposed by the central bank would not be a solution. “We have said in meetings with various state authorities that there should be a law on digital assets and that there should be legal regulations“.