Just-In: Crypto Exchange Thodex CEO Sentenced To 11,196 Years In Prison

Faruk Fatih Ozer, CEO of Turkey-based crypto exchange Thodex, is sentenced to 11,196 years in prison by a Turkish court for multiple crimes including fraud, leading a criminal organization, and money laundering. Thodex was the largest crypto exchange in Turkey, but went online suddenly in April 2021 and Ozer escaped to Albania.

Thodex CEO Faruk Fatih Ozer Gets 11,196 Years In Prison

A court in Istanbul sentenced Faruk Fatih Ozer to 11,196 years imprisonment for duping thousands of crypto investors of more than $2 billion, reported Bloomberg on September 8. His two siblings also received prison sentences. Ozer was indicted on several charges such as aggravated fraud, leading a criminal organization, and money laundering.

“I am smart enough to lead any institution on Earth. That is evident in this company I established at the age of 22. I wouldn’t have acted so amateurishly if this were a criminal organization.”

Faruk Fatih Ozer founded Thodex in 2017 and fled to Albania after Thodex went bust in April 2021. Turkish Interior Ministry said it was an exit scam. Ozer was arrested in Albania in August 2022 and extradited to Turkey in April this year after a long legal process.

While the total amount of losses for crypto investors remains unknown, the prosecutor’s indictment estimated $13 million. However, Turkish media reported $2 billion in losses to its users. A Chainalysis study showed the value of cryptocurrency lost at Thodex at $2.6 billion.

Thodex fallout severely impacted the crypto community in Turkey increasing scrutiny on crypto firms and exchanges. Turkey faces high inflation and devaluation of the Turkish lira but the crypto failed to provide respite to the community due to the Thodex collapse.

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