Crypto Exchange Thodex Founder Sentenced to Over 11,000 Years Amid Fraud Allegations

In a decision by the Anatolian 9th High Criminal Court, Faruk Fatih Özer, the mastermind behind the Turkish cryptocurrency platform Thodex, has been found guilty in a significant fraud case. Alongside Özer, six other individuals were detained, making up a total of 21 individuals implicated in the fraud allegations.

The court’s judgment was severe. Özer, together with his siblings, Güven Özer and Serap Özer, received a staggering sentence of 11,190 years and 6 months imprisonment. The charges that led to this lengthy sentence encompassed “establishing, directing, and participating in a criminal organization,” “engaging in sophisticated fraud,” and “money laundering.”

In addition to this, the court mandated an extra sentence of 6 years, 4 months, and 15 days for each sibling. They were also slapped with a hefty fine of 135 million lira for “committing fraud using digital systems.” In total, the cumulative sentence for each of the Özer siblings stands at 11,196 years, 10 months, and 15 days.

Thodex, which was once a beacon in Turkey’s cryptocurrency landscape, took an unexpected turn in 2021 when it suddenly halted all operations. This abrupt closure left numerous users in a quandary, unable to access their digital assets, which were estimated to be worth around $2 billion.

The situation became murkier when Özer departed Turkey post the shutdown, sparking rumors of a potential exit scam. Despite the swirling allegations, Özer remained steadfast in his denials.

In the courtroom, Özer presented a defense centered on the premise that Thodex was simply a business venture that unfortunately went under. He asserted, “I possess the acumen to oversee any global institution. My capabilities are evident from the enterprise I initiated at a mere age of 22. Had I intended to create a criminal syndicate, my actions would have been far more sophisticated.”

The Anadolu Chief Public Prosecutor’s Office, in its indictment, shed light on the deceptive practices of the Thodex platform. The document revealed that a sum equivalent to 253 million 714 thousand 909 lira in cryptocurrency was moved from three distinct accounts under the control of Özer. Intriguingly, a large chunk of these digital assets found their way to cryptocurrency wallets based in Malta.

The saga took another twist when Özer was captured in Albania on August 30, 2022. Following legal procedures, he was extradited to Turkey by April 20, 2023, and by April 23, he was under detention at the Anadolu Justice Palace.

This case has garnered extensive coverage from global media powerhouses like Cointelegraph and Fortune. Their reports underscore the pivotal nature of the Thodex case in the realm of cryptocurrency and highlight the broader ramifications it holds for the regulation of digital assets and safeguarding investor interests.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

Image source: Shutterstock


Tagged : / / / /

Turkey to Jail Missing Thodex CEO and Executives for at Least 40,000 Years

A year after the Thodex cryptocurrency exchange went bankrupt, Turkish prosecutors are now seeking at least a 40,000 year-jail term for Faruk Fatih Ozer, the Chief Executive Officer of the trading platform reported to have fled with at least $28 million of trader’s funds. 


According to a Bloomberg report citing local news channel Demiroren News Agency, prosecutors want the court to sentence Faruk and as many as 20 other executives of the trading platform to a cumulative of 40,564 years in jail.

The disappearance of Faruk comes off as one of the criminal cases involving a high-profile digital assets trading platform that has remained unsolved to date. Turkish law enforcement officials have been unable to locate Faruk, despite hints that he fled to Albania and an issued Red Notice on him by Interpol. 

Faruk, 28, founded the Thodex trading platform to tap into the boom of the cryptocurrency ecosystem in Turkey as citizens find alternative ways to make money and preserve value in the wake of the fast devaluing Lira fiat currency. Per the reports, Faruk and his executives mismanaged the operations of the trading platform and went offline abruptly without prior notice to its customers back in April last year.

In at least one account, Faruk has issued a message that he is willing to repay all investors who suffered losses through the trading platform and plans to return to Turkey. In about a year since the notice was issued, not much has been heard from the estranged CEO.

Trading platforms are constantly under a number of attacks which could come either as external from cybercriminals or from internal occurrences. Canada’s once big exchange, QuadrigaCx, also went bankrupt with the death of its CEO, Gerald Cotten, an event so gory that it had to gain recognition for a documentary from Netflix. 

These occurrences have made regulators generally sceptical of the digital currency ecosystem and undoubtedly impact how regulators are approaching the still-nascent industry.

Image source: Shutterstock


Tagged : / /
Bitcoin (BTC) $ 38,909.42 0.28%
Ethereum (ETH) $ 2,129.52 1.78%
Litecoin (LTC) $ 71.92 0.11%
Bitcoin Cash (BCH) $ 226.65 0.81%