Going abroad for a meeting or skipping town? Bloomberg reports that the CEO of a Turkish exchange has vanished, leading to the platform's temporary closure and nearly $2 billion in losses for users.

The cryptocurrency market plummeted starting in the early hours of the 23rd, with negative news including U.S. President Biden's consideration of adjusting capital gains taxes, and reports of the CEO of the Turkish cryptocurrency exchange Thodex fleeing, affecting nearly 400,000 users with potential losses totaling up to $2 billion.

Exchange CEO Goes Missing

Bloomberg reports that the lawyer of Turkish cryptocurrency exchange Thodex claims that its CEO, Faruk Fatih Ozer, has fled Turkey due to inability to sell his shares and a lack of operational funds. The exchange's crypto asset holdings have also decreased, and when most users attempt to withdraw, the exchange will be unable to meet the demand.

According to the official Twitter account, Thodex states that the exchange will be temporarily closed for five business days, and users need not worry about their assets.

CEO: Allegations are False

Currently, the Thodex website has suspended trading, but the CEO, despite disappearing, has released a statement on the platform, saying:

There have been no victims among the exchange's users so far. The platform took responsibility for all losses in the 2018 hack. However, last week, during a technical check, several accounts were found to be abnormal, indicating that the hack was still ongoing, leading to the temporary closure of the platform.

He emphasizes that the accusation of $2 billion in user losses is unsubstantiated and only about 30,000 users are affected, not the 400,000 as reported by Bloomberg. He claims to have traveled abroad for a meeting on April 19.

His statement differs significantly from the Bloomberg report, where the CEO's statement reads:

From today on, my only aim is to repay the debts. The day I repay all debts, I will return to my country and face the consequences.

Turkish Regulatory Issues

Over the past five years, due to prolonged economic weakness and the impact of COVID-19, the Turkish Lira has continuously depreciated against the US Dollar, reaching a high of 0.35 and a low of 0.12, almost a one-third decrease. It is reported that the soft currency and inflation pressures have driven local demand for cryptocurrencies.

Recent reports also indicate that Turkey will ban cryptocurrency payments, restrict Bitcoin applications, and the ban states that crypto assets are not regulated by regulatory authorities and pose other security risks, potentially causing irreparable losses to both parties in a transaction. This ban will come into effect on April 30.