Thodex cryptocurrency boss jailed for 11,196 years in Turkey for fraud

Faruk Fatih Ozer fled Turkey after Thodex's collapse.

A Turkish cryptocurrency boss and his two siblings have been jailed for 11,196 years each for defrauding investors of millions of dollars.

Faruk Fatih Ozer, founder of Turkey's once-prominent cryptocurrency exchange Thodex, fled to Albania in 2021 after the exchange collapsed, taking investor assets with him. Thodex had gained national prominence, partly due to the growing interest in cryptocurrencies as a hedge against the devaluation of the Turkish lira. However, in April 2021, the platform imploded, leaving investors with significant losses. Ozer was eventually arrested in Albania and extradited back to Turkey in June 2023.

During a brief trial in Istanbul, Ozer, along with his brother and sister, was convicted of fraud, money laundering, and organized crime. Despite Ozer's claims that he would not have acted "so amateurishly" if his intent were criminal, the court handed down severe sentences. Ozer was sentenced to 11,196 years in prison, while his siblings received similarly lengthy sentences. Such extraordinary sentences are not uncommon in Turkey, where the abolition of the death penalty has led to extraordinarily long prison terms for severe crimes.

Ozer's story is one of financial deceit that captured national attention. At the height of its success, Thodex had been one of Turkey's largest cryptocurrency exchanges, with Ozer ingratiating himself with prominent pro-government figures. However, the collapse of the platform revealed that Ozer had defrauded thousands of investors, with the estimated losses initially reported to be as high as $2 billion. However, official estimates later placed investor losses closer to 356 million Turkish lira, which was worth around $43 million at the time.

This case serves as a stark reminder of the risks associated with cryptocurrency exchanges in countries where regulation may be weak, and investor protections are lacking.