The chief executive and founder of Thodex has been detained by authorities in Albania. When the Turkish trading platform collapsed, the founder had allegedly fled with customer funds.
Interpol had issued a red notice for Faruk Fatih Ozer and he had been wanted for fraud.
Albanian authorities take action
Faruk Fatih Ozer, the 27 year old businessman from Turkey, was arrested by police in Albania. He had launched and operated the Thodex crypto exchange, which is now defunct.
He reportedly fled Turkey with about $2 billion of assets of investors and since then, the law enforcement in Albania has been working on locating him.
It is believed that almost 400,000 people suffered from losses because of the collapse of the crypto trading platform.
The Ministry of Internal Affairs in Turkey announced that Bledar Cuci, the Minister of Interior of Albania had informed Suleyman Soylu, his counterpart in Ankara, about the arrest.
The man had been captured in the city of Vlora and biometric data had been used for confirming his identity.
The Thodex trading platform had become immensely popular in Turkey during the crypto boom, as many people were resorting to cryptocurrencies as a hedge against the high inflation in the country.
Moreover, the Turkish Lira had also depreciated rapidly and this also generated more interest in cryptocurrency.
Ozer had disappeared last year after the platform shut down and an international arrest warrant had been issued for him in 2021.
The prosecutors in Turkey are seeking prison sentences for the founders of Thodex and other members of its executive team totaling thousands of years.
These people are suspected of shutting down trading as part of an exit scam. The charges brought against them include money laundering and fraud.
According to authorities, the damages brought on by the activities of the Thodex platform were in excess of 350 million Turkish liras.
The interior ministry in Turkey disclosed that the necessary procedures for extraditing Ozer to Turkey had already been initiated by the authorities in Albania.
The founder of the defunct crypto exchange is currently being held in Elbasan. It is expected that he will be brought to court soon.
Up until now, the Turkish authorities have detained about 60 people as part of their investigation into the exchange.
The police in Albania also disclosed that during their arrest of Thodex’s founder, they had also made a few other arrests.
These included a resident from Durres and one from Tirana and these two had been apprehended in order to determine how they are related to the suspect.
They also seized a number of items from the three as evidence, which includes mobile phones, laptop computers as well as bank cards.
There have been several cases of late where scammers and fraudsters in the crypto industry have been apprehended by authorities.
Law enforcement has become very active when it comes to investigating crimes in the crypto world in order to ensure maximum consumer protection.