Turkish Thodex Crypto Exchange's CEO Sentenced to 11,196 Years in Jail

Tanya Sharma
Tanya Sharma Published on September 08, 2023 06:12 PM

Faruk Özer, CEO of Collapsed Turkish Crypto Exchange Thodex, Receives Unprecedented 11,196-Year Jail Term

Turkish Thodex Crypto Exchange's CEO Sentenced to 11,196 Years in Jail
Source: Unsplash

Faruk Fatih Özer, the founder of the now-defunct Turkish cryptocurrency exchange Thodex have been handed down a staggering sentence of 11,196 years, 10 months, and 15 days in prison.

The Local media reported by local media sources. Additionally, a judicial fine of 135 million liras (approximately $5 million) has been levied.

Thodex Crypto Exchange: From Prominence to Collapse

Thodex once stood as one of Turkey's largest crypto exchanges until its sudden closure in April 2021, leaving over 400,000 members in the dark without access to deposits totalling $2 billion in cryptocurrencies.

Özer, the key figure behind the exchange, fled to Albania, triggering an Interpol red notice against him.

By April 2023, Özer was successfully extradited to Turkey and taken into custody by local authorities on charges of cryptocurrency laundering and fraud.

He faced an array of charges, including establishing and managing an organization for criminal purposes, being a member of an organization,

  • Fraud through information systems linked to banks or credit institutions.
  • Fraud committed by merchants company executives, or cooperative managers.
  • Money laundering is associated with criminal activities.

Complex Legal Proceedings and Verdict

The ensuing legal proceedings saw Özer's brother, sister, and four high-ranking employees incarcerated. An additional 83 individuals were detained as part of the investigation. 

Ultimately, the trial featured 21 defendants potentially facing a cumulative sentence of up to 40,564 years in prison.

The Anatolian 9th Heavy Penal Court delivered its verdict, resulting in the acquittal of 16 out of the 21 defendants. Four of the seven jailed individuals were released due to insufficient evidence. 

The remaining defendants received varying degrees of imprisonment for their involvement in different aspects of the case.

Impact on Turkish Crypto Landscape

The Thodex collapse sent shockwaves through Turkey, where cryptocurrencies had become a popular choice for safeguarding against soaring inflation rates and the drastic devaluation of the lira.

With this substantial sentence, it remains uncertain how this development will influence Turkey's cryptocurrency community and the broader financial sector.

The sentencing of Faruk Özer, along with his siblings, marks a pivotal moment in the Thodex saga. This landmark verdict not only brings a degree of closure to the affected parties but also sets a significant precedent in the legal handling of cryptocurrency-related cases.

As the repercussions of this decision unfolds, it will undoubtedly leave a lasting impact on Turkey's crypto landscape.




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