Turkish Crypto Exchange Facing Class Action Lawsuit for Fraud and Stealing

Thodex is the largest crypto exchange platform in Turkey and has over 39 thousand user base with a daily trading volume of $1.4 billion on average. Recently, Oguz Evren Kilic launched a class-action lawsuit against the Turkish crypto market that has stolen billions of dollars from its users. 

Kilic, the prosecution legislator, told Bloomberg in an interview that Thodex has locked its thousands of users out of their accounts and holdings. The official website of the exchange has also gone offline. The founder and CEO of the exchange Faruk Faith Ozer had fled the country before the website went offline. The users are now joining forces to sue the exchange for stealing and other legal charges. 

Turkey’s Ban on Cryptocurrencies

The background of this crypto ban is not as simple as it looks. The trouble has been brewing for a long time. It seems that the infamous president of the United States, Donald Trump, has managed to get into a scrap with Turkey during the last days of his presidency. There has been some religious disturbance among the countries, and Pastor Andrew Branson has been put under house arrest.

According to the Turkish government, the pastor was trying to convert Kurdish citizens into Christianity. Trump immediately declared that the allegations were baseless and proceeded to impose additional tariffs and sanctions against the country. The recent diplomatic spat has imposed Turkish President Recep Tayyip Erdogan to declare an economic war against the USA. 

Turkish Money Devaluation

In the aftermath of this economic war, the Turkish Lira took a massive hit and got a 20 percent devaluation. This type of fall is never before seen happening for the Turkish currency. However, this dip took the citizens to the crypto exchanges that are operating in the country. The trading volume started to wallow up while the Lira kept falling. The Turkish president called upon the investors to buy Lira, and the central bank of Turkey eventually imposed a ban on cryptocurrencies that would be full in effect by April 30th. 

The ban gave the traders ample time to move their holdings out of the foreign crypto exchanges. However, the CEO of one of the biggest exchanges fled the country and locked thousands of users out of their investments. The website of Thodex claims that it is down for inspection and maintenance for five working days. Some rumors speculate that Ozer is hiding in Trinia, Albania.

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