You should be on the lookout for a few things to prevent a severe cryptocurrency fraud. There are some red flags that indicate your money is not secure. There is a true account of a $1 billion cryptocurrency fraud that resulted in the longest prison sentence in history. In Turkey, a cryptocurrency exchange had actually collapsed back in 2021. It was a time when inflation was causing Turkey's fiat currency, the lira, to depreciate daily. The notion of exchanging the Lira for Bitcoin was developed in order to avoid inflation and possibly increase wealth. The Turkish people began using a cryptocurrency exchange called Thodex, which offers a chance that appears legitimate.
Millions of Dogecoin are being given away by Thodex, which almost seems too good to be true. Thousands of Thodex users decided to retain their money in the exchange rather than in their wallets. When the government said that cryptocurrencies will be banned at the end of the month, the user had great confidence in the exchange platform until something went wrong. Due to this, Thodex began selling Dogecoin for only $0.11, which was less than its market value. Within a day, Thodex exchanged around 5 million Dogecoin.
The users began to have suspicions that something was wrong and they wanted to start withdrawing the asset to avoid being frozen. The issue is that withdrawals aren't being processed, and the most alarming development occurred when the exchange went offline and informed users in a letter that they would be unavailable for 4 days. Thodex intervened and claimed that because their asset has decreased in value along with the market, they are unable to pay people who have requested withdrawals. All of the customer's cash have been spent and are no longer available.
They located Faruk Fatih Ozer, the founder of the exchange platform, and all of the users demand their money back, but he was known to be located. The following day, he was seen at the airport in Albania, but the authorities had already filed an international arrest warrant. A thorough investigation revealed that Thodex transferred 5,000 BTC to Kraken exchange, which was then valued 125 million, a month before Faruk left.
A well-known exchange called Thodex ran from 2017 until its demise in 2021. After a year of seeking, Faruk was located in Albania, and the court seeks to sentence Faruz and his accomplice to more than 40,000 years in prison. Not only did thousands of people lose their money, but crypto freedom in Turkey may also be at risk as a result. However, they are warnings that will prevent you from falling victim to this con. A good welcome offer is accepted, but if the offer is large, something is wrong. The second is the impractical massive offers. Since Thodex was giving away millions of free dogecoin, the offer should have been obvious.
The fact that the exchange platform is unregulated and the exchange owner can get away with significantly more money is another factor to take into account. Selling coins for a very low price is another issue; this is a major warning sign. The price of Dogecoin on Thodex was far lower than the asking price. Another is when withdrawals are difficult or take a long time. If you hear complaints that withdrawals on an exchange are slow or frozen, it might already be too late, but you need to start moving your money as soon as this started to happen. Another indication is when the exchange goes offline without warning. Since an exchange exists to make money, it doesn't want to do so. Another indication is when the proprietor of cashing out.
You are right in what you have said. Some exchanges are dubious so it is best to be careful before making any investment
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