Recently a CEO of a local crypto exchange decided to stop operations and fly away with the money of the customers in the exchange. As the story is full of suspicious actions, crypto news websites and media sources made up an unreasonable amount of money with pointless stories. Let's learn what really happened.

First of all, $2B is absolutely unreasonable because this amount reflects the total volume of the exchange that is made by bots, and Thodex isn't known/utilized by people as it's put forward. It was growing but not a popular one.

Everything Started with Rebranding Process

The exchange chose to rebrand itself, formerly Koineks, by guaranteeing that they are accomplices with BitGo (somewhat it was valid anyway they were teaming up only for hot wallet stuff) and they could appeal to individuals with the FinCEN permit. So far so good, right?

Rebranding + BitGo + FinCEN certificate... Sounds reasonable.

With the rebranding and effective advertisement, the trade discovered a spot for itself in the race of crypto exchanges which are already used by the majority. Be that as it may, neither the quantity of genuine clients nor the volume of the trade has never been acceptable. In the end, it was a bot-driven one with growing numbers...

Expensive Ads with famous people

The main sign that the trade made individuals question a few things was the meaningless advertising for certain well-known individuals. In the photos, there was a cool dark vehicle and there were individuals in red clothing regulation before it. There's nothing more to it. Then again, the cash spent for this sh*t was unimaginably high.

The way the CEO followed was a bit old-fashion. As crypto is an internet-oriented ecosystem, these celebrities have no place in our community.

Followingly, Sponsorships with Crypto Guys

The exchange was the sponsor of some renowned Youtubers and crypto news sites to turn out to be more trustworthy or popular. Even though they were considered one of the "reliable" and "global" exchanges, there were only individuals who checked out to it as there are incredible nearby trades that have been serving faultlessly for quite a long time.

Bot-driven Nature of the Local Exchange

As in numerous trades, the market creator bots were 7/24 attempting to build the volume just as making conceivable spreads for offers and inquires. Obviously, these folks had some genuine clients yet they were the ones who joined crypto after mid-2020 or 2021 IMO. I call them post-pandemic losses 🤷‍♀️

Each platform can use bots to decrease the spread between asks and bids but these kinds of bots are used to show them bigger than what they are.

The Point that the System Stucked

You may say that how on the earth these unskilled folks neglected to work a local exchange like the others. The appropriate response is straightforward:

At the point when a client purchased Bitcoin Cash, they just showed digits toward the front. They never purchased genuine BCH for the client while taking the cash. As expected, they could not cope with the fluctuating crypto market and eventually, they chose the wrong option...

Moving through the Theft

After examining a few transactions done by individuals, it was seen that the trade was moving the stores to some other "hot" wallets to trade in worldwide exchanges such as Binance.

Imagine that you get into the crypto ecosystem a couple of weeks ago and the transactions are taking place. Naturally, you may not realize the things going around but veterans understood.

The Last Stage - Playing the Pinocchio

The exchange announced a partnership a few days before declaring bankruptcy. This was somewhat suspicious yet inevitably, an open letter was shared by the CEO expressing that they are not fit for keeping up the consumptions, subsequently, they will report an organization with one of the notable worldwide trades.

From the start, $2B cash was speculated by crypto news sites for misleading content; for the sake of clickbait. They relied on the fact that the volume was just about as much as the sum that they referenced. Although %99,9 of individuals know about bots, they get what they wanted. Nonetheless, the theory developed staggeringly.

With regards to the truth, it's assessed that $100-150M digital currencies were moved to their wallets before they escape from the country. As I would like to think, they couldn't take that much cash as they need individuals to take their cash for burglary 💁‍♂️

Final Words,

Frauds consistently happen when there is a potential for progress. Thodex or Vebitcoin or some other trade may attempt to mislead individuals with their hallucination. By then, things we can just educate individuals and bring issues to light.

Numerous TV channels began discussing crypto after that sh*t. I don't have faith in their moral ethics to educate the crowd. We should forestall the spread of falsehood however much as could be expected.

I kindly ask you to inform people about the truth. As we are on the verge of regulations, such fake news may have an impact on the decisions taken by the governments to protect the naive users. This is just an exceptional case that shook the whole market and community due to unrealistic speculations. We should learn to deal with all these frauds to be able to protect our growing crypto ecosystem.