Founder of Thodex Cryptocurrency Exchange Sentenced to Over 11,000 Years in Jail
The founder of Thodex, a Turkish cryptocurrency exchange, has been given an unprecedented sentence of 11,196 years, ten months, and 15 days for defrauding 400,000 users of more than $2 billion in cryptocurrencies. Faruk Fatih Özer, along with his older sister and brother, will all serve the same jail term and pay a judicial fine of 135 million liras ($5 million).
Özer’s Arrest and Extradition
In August 2022, Interpol issued a red notice against Özer, leading to his arrest. After Thodex abruptly halted its operations in 2021, Özer fled to Albania. He was eventually extradited to Turkey in April 2023 to face fraud charges. During his first trial in June, he denied the allegations and claimed to be framed.
Previous Jail Sentence and Özer’s Defense
In July, Özer was sentenced to seven months and 15 days in jail for failing to provide certain documents to the Turkish Tax Inspection Board. During the recent trial, Özer defended himself by stating that Thodex had gone bankrupt and that he would not have acted in such an amateur manner if he intended to form a criminal organization.
Acquittals and Remaining Defendants
Out of the 21 defendants, 16 were acquitted, and four were released due to a lack of evidence. The remaining defendants received various jail sentences.
Hot Take: A Landmark Case in Cryptocurrency Fraud
The sentencing of Faruk Fatih Özer and the subsequent trial of Thodex’s founders and managers serve as a significant milestone in combating cryptocurrency fraud. It highlights the importance of transparency and accountability within the crypto industry, as well as the need for regulatory measures to protect investors. This case sends a strong message that those who engage in fraudulent activities in the crypto space will face severe consequences.
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