Unable to recoup their investments, users of Turkish cryptocurrency exchange Thodex have filed a lawsuit accusing the exchange of fraud that could amount to as much as $2 billion. Meanwhile, Thodex founder Faruk Fatih Ozer has fled the country.

The founder of Thodex is suspected of running away, and the money involved may be as much as $2 billion

On April 22, the Thodex cryptocurrency exchange said on its website that the platform would be closed for four to five days. The Thodex cryptocurrency trading platform handles daily cryptocurrency transactions worth hundreds of millions of dollars. Users who were unable to withdraw money or access their accounts said on Twitter that they might have been scammed, a comment that was widely picked up by Turkish media. Thodex reportedly has around 390,000 active users and could be worth as much as $2 billion!

According to news reports, police raided the company's headquarters in Istanbul and seized computers and digital material. So far 62 people have been detained in an operation centred on Istanbul that spanned eight provinces, and arrest warrants have been issued for 12 others. Faruk Fatih Ozer, the CEO and founder of Thodex, fled the country on a commercial flight from Istanbul last Wednesday night. According to Anadolu Agency, Turkish authorities have begun the process of issuing an international arrest warrant for the arrest of Faruk Fatih Ozer.

Turkish security officials on Tuesday released this photo of Faruk Fatih Ozer passing through passport control at Istanbul airport on his way to Albania.

Crypto industry turmoil

Faced with a depreciating Turkish lira and high inflation, more and more Turks are turning to cryptocurrencies to protect their savings. Despite growing skepticism from President Recep Tayyip Erdogan's government over its security, the Turkish crypto market remains unregulated.

And as authorities and customers try to figure out the ins and outs of the chain of events and the amount of investment involved, officials are urging swift regulation of the cryptocurrency market. As cryptocurrency prices have soared, there have been cases of fraud related to crypto platforms across the globe, as well as speculation that authorities will tighten regulations.

According to a recent statement released by Turkey's central bank, Bitcoin and other cryptocurrencies have been banned as forms of payment for goods and services. The Turkish central bank said in a statement that transactions involving cryptocurrencies could cause "irreparable" damage and significant risks. The new law will come into effect on April 30.