Founder of Turkish Crypto Exchange Thodex Sentenced to Over 11,000 Years in Jail
Faruk Fatih Özer, the founder and CEO of Thodex, a now-defunct Turkish cryptocurrency exchange, has been sentenced to 11,196 years in prison. Local media sources reported that Özer was found guilty of aggravated fraud, leading a criminal organization, and money laundering.
During the trial, Özer claimed his innocence and stated that he was capable of leading any institution. He also denied that Thodex was a criminal organization.
In addition to Özer, his two siblings, who were involved in running the exchange, received similar jail terms. They were also ordered to pay a fine of approximately 135 million Liras ($5 million).
The trial involved a total of 21 defendants, with 16 being acquitted and four being released due to lack of evidence. Other defendants received various prison sentences for their involvement in the crimes.
The Thodex Collapse
Thodex was the largest cryptocurrency exchange in Turkey before its collapse. Around 400,000 users were unable to access their crypto deposits, amounting to nearly $2 billion.
Initially, Özer attributed the exchange’s closure to a pause in trading due to an external investment. However, he later claimed that cyberattacks had caused the halt. Despite this, he assured investors that their funds were secure and promised to reimburse them.
After the collapse, Özer fled to Albania and was eventually found in the city of Vlorë. The Thodex collapse shocked Turkey, as it coincided with the devaluation of the Turkish lira and subsequent inflation in the country.
Hot Take
The sentencing of Faruk Fatih Özer and the collapse of Thodex highlight the risks associated with unregulated cryptocurrency exchanges. It serves as a reminder for investors to exercise caution and conduct thorough research before engaging with any cryptocurrency platform. The incident also emphasizes the importance of regulatory frameworks to protect investors and maintain the integrity of the crypto industry.
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