Wanted Thodex Founder Detained in Albania
- Faruk, the founder of Thodex, reportedly made away with $2 billion, which he collected from the company before fleeing.
- Interpol issued a red notice on April 23, 2021.
- Some of the other conspirators have been imprisoned while Faruk’s extradition procedures are ongoing.
Faruk Fatih zer, the founder of the failed Turkish crypto exchange Thodex, has reportedly been detained by Albanian law enforcement. The operation was said to have been carried out at 5:30 am (UTC) on August 30 in Tirana, the country’s capital city.
Faruk is being detained in detention at the moment, and local officials will inform the Turkish embassy in Tirana after a round of investigation. The Albanian government and the Turkish Ministry of Internal Affairs are collaborating on the investigation. Following judicial proceedings in Albania, it is anticipated that Faruk will be deported to Turkey.
In April 20221, reports emerged that Faruk’s whereabouts were unknown after his exchange halted trading and withdrawals. Law enforcement agents reportedly investigated the situation and arrested more than 60 individuals connected to the defunct exchange.
Authorities issued a warrant for Faruk’s arrest alongside that of other key individuals. However, Faruk was said to have fled to Albania, where he tried to evade the law. Other unsuccessful attempts were made to arrest him in Albania.
The Thodex scandal was one of the biggest stories in Turkish media in 2021 as it affected almost 400,000 crypto users and wiped out nearly $200 million in investments. The incident and other similar crypto-related scandals prompted Turkish authorities to implement new crypto-related policies. One such move was a ban on crypto payment options.
Turkey has one of the most active crypto markets in Europe. The country has several domestically developed crypto apps and little foreign influence. As a result, Turkey was also ranked amongst the top 10 countries adopting crypto in 2020. Additionally, the daily active users observed in February 2021 were reportedly higher than those of cryptocurrency wallets in the United Kingdom.
High-profile scams and failures of top crypto projects such as Three Arrows Capitals, Terra, Celsus, and Voyager have led to calls for more restrictive measures. The founders of some of these companies, like 3AC, have reportedly fled the scene while owing billions to clients.
According to reports, more than $1 billion has been lost to crypto scams, hacks, and fraud since the year began. As a result, several countries are exploring different ways to regulate the crypto industry and offer more security to investors.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
