Crypto Exchange Thodex Prevents Withdrawals, Cites “Pending Investments”Investment

Not a day goes by without some controversy in the cryptocurrency world. Today does not disappoint either, as the Thodex exchange is facing ample scrutiny. Freezing user accounts and preventing them from withdrawing funds raises many concerns and questions. 

What Is Going On With Thodex?

Cryptocurrency exchanges and trading platforms offer many conveniences but also pose significant security risks. As these companies take control of user funds, there is always some concern if something goes wrong. Users of the Thodex exchange found this out the hard way this week. Numerous traders are unable to access their Thodex account or withdraw funds from the company for no apparent reason.

Earlier today, the company issued a statement on its website. In the announcement, the team explains its services will be inaccessible for four to five days. What is even more worrisome is how there is a “sale process” behind the scenes. What that means exactly is anyone’s guess, but developments like these never pan out well. Preventing users from accessing an account or obtaining their funds is never a positive sign.

Thodex makes mention of “new investors and partners,” which will be announced shortly. Assuming that is the case, it is still no reason to shut down the exchange altogether. It is essential to provide a continuous operation regardless of what may be happening behind the scenes. Users should never face issues because of a business deal they have no prior knowledge of.

The timing of these incidents raises many questions. Thodex is a Turkish crypto trading platform, yet the government banned the use of crypto assets. Many people believe this is the reason why the Bitcoin price is tanking, although there is no apparent correlation between the two. It is not the first, nor the last time a central bank will oppose Bitcoin, only to embrace it shortly after.

Lawsuits Are Being Prepared

If an incident like this took place years ago, hardly anyone would bat an eye. Today, things are a bit different. Various Thodex users indicate they aim to file a lawsuit and press charges against the company. Assuming they will go ahead with this idea, it will undoubtedly hinder Thodex’s business dealings, assuming they are genuine, which has not been confirmed.

According to Reuters, there are several thousand criminal complaints made against Thodex so far. That is a significant and also worrisome amount, although it doesn’t necessarily mean anything. There also appears to be an official investigation launched by an Istanbul prosecutor’s office, which can certainly help things move along. 

For the time being, things are not looking too great for Thodex. One can only hope the affected users will be able to access the platform and get their funds out safely. Even if the company is being acquired, this unannounced downtime will have lingering effects. It takes years to build a strong reputation, yet one can shatter it with just one move. 

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JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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JP Buntinx

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