NEWSROOM

Attorney Murat Aydar said that at least $2.2 billion worth of cryptocurrencies have been stolen in attacks on cryptocurrency exchanges by hackers around the world since 2014. He stated as follows "The lack of legal status of cryptocurrency exchanges in Turkey makes it difficult to compensate users who are victims of cyber attacks or fraud." 

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

ISTANBUL (TR) - Stating that many investors have turned to cryptocurrencies, especially with the COVID-19 pandemic, Lawyer Murat Aydar said, "The exchanges that provide services in the purchase and sale of cryptocurrencies have reached a serious portfolio with the increasing demand in this period. This rapid rise has whetted the appetite of crypto money exchanges to reach new users. Many exchanges used their users' investments in their marketing and advertising efforts. When users wanted to withdraw their money in sudden depreciation, they could not meet this demand. The stock markets could not ensure the sustainability of the system, and the absence of a legal regulation made it more likely for investors to be affected.

"Users may not get their money back"

Stating that big profiteering has been made in cyber attacks on crypto money exchanges, lawyer. Aydar said,"The only problem that crypto money investors may encounter in the stock markets is not the stealing of money and escaping abroad, as in the case of Thodex. Cyber ​​attackers have also signed major thefts around the world. In 2014, 450 million dollars’ worth of bitcoin was stolen from Japan-based MTGox crypto money exchange. and no users have been refunded.Likewise, in 2018, 230 thousand users became victims. A total amount of 146 million dollars of crypto money was stolen from the Italy-based BitGrail crypto money xchange. This year, was the system was hacked and in the attack $ 610 million was stolen on Poly Network. Fortunately, the hackers returned the money and the investors were refunded. Although the problems seem to be solved with the developments in blockchain technology and the well-intentioned approach of the stock markets recently, it cannot be guaranteed in any way that these exchanges, which are not largely regulated, will get investors' their money back in case of possible attacks.

"There are two steps that victims of cryptocurrency exchanges can take"

Stating that the first thing that victims of crypto money exchanges or cyber attacks can do is to file a criminal complaint, lawyer. Murat Aydar said, "In the second step, a liability lawsuit can be filed against both the company and the members of the board of directors in accordance based on the article no 553 of the Turkish Trade law. However, if the said persons do not have any assets on them and their accounts cannot be traced, it may not be possible to recover the lost investments even if the case is won. In order to prevent the losses caused by fraud and cyber attacks, crypto money exchanges should be preferred, with a solid technological infrastructure, covering investors’ losses by creating funds and providing letters of guarantee in exchange for the money invested.

"The loss of my clients exceeded 5 million TL"

Stating that the number of victims of cryptocurrency exchanges is increasing gradually, Lawyer. Aydar said, “Only my clients lost more than 5 million TL from fraudulent cryptocurrency exchanges. We know that there are thousands of people who are victims to the same things. Although we have filed a criminal complaint against the fraudsters, no criminal sanctions can be applied because they have already fled abroad. Since the legal status of cryptocurrency exchanges is not fully specified, there is no obligation to obtain permission to operate according to the CMB, BRSA or Central Bank legislation. In order to avoid such grievances, regulations that will secure the investors should be announced as soon as possible."