Faruk Fatih Özer, the CEO of the Turkish-based cryptocurrency exchange Thodex, has been sentenced to 11,196 years in prison for multiple crimes including fraud, leading a criminal organization, and money laundering. Thodex was considered one of Turkey’s largest cryptocurrency exchanges, but it experienced a sudden collapse in April 2021, after which Faruk Fatih Özer fled to Albania.
Faruk Fatih Özer Receives 11,196 Years in Prison
According to Bloomberg’s report on September 8, a court in Istanbul sentenced Faruk Fatih Özer to 11,196 years in prison for defrauding thousands of cryptocurrency investors out of more than $2 billion. His two brothers also received prison sentences. Özer was charged with aggravated fraud, leading a criminal organization, and money laundering.
In his defense, Faruk Fatih Özer stated:
“I am intelligent enough to manage any institution in the world. This is clearly evident in the company I founded at the age of 22. If this were a criminal organization, I would not have acted so amateurishly.”
Faruk Fatih Özer and the History of Thodex
Faruk Fatih Özer founded Thodex in 2017 and fled to Albania after Thodex declared bankruptcy in April 2021. The Turkish Ministry of Interior Affairs stated that this was an exit scam. Özer was arrested in Albania in August 2022 and extradited to Turkey in April of this year after a lengthy legal process.
While the total amount of losses suffered by cryptocurrency investors is unknown, the indictment estimates it to be $13 million. However, the Turkish media reported that its users incurred losses of $2 billion. A study by Chainalysis showed that the value of the lost cryptocurrency on Thodex was $2.6 billion.
The collapse of Thodex had a significant impact on the cryptocurrency community in Turkey and increased scrutiny on cryptocurrency companies and exchanges. As Turkey grapples with high inflation, the Turkish Lira also faces the risk of devaluation. Additionally, investors seeking a safe haven and favoring cryptocurrency have started to question their approach to cryptocurrencies and exchanges after the Thodex incident.
