Thodex CEO Gets 11,000-Year Jail Sentence Over $2B Crypto Exchange Collapse

Thodex, the cryptocurrency exchange, faced a massive collapse resulting in a $2 billion loss. As a consequence, the CEO of Thodex has been sentenced to 11,000 years in jail. This article provides details about the case and the charges faced by the CEO, ensuring it is SEO friendly and easily discoverable online.

The Founder of Thodex Sentenced to Over 11,000 Years in Jail for Crypto Exchange Scam

Turkish crypto exchange Thodex made headlines recently as its founder and CEO, Faruk Fatih Özer, was sentenced to a staggering 11,196 years in jail. Özer was found guilty of aggravated fraud, leading a criminal organization, and money laundering, according to local media sources. Two of Özer’s siblings, who also played a role in running the exchange, were given similar jail terms.

In addition to the lengthy prison sentences, a court-ordered fine of approximately 135 million Liras (around $5 million) was imposed on the defendants. The trial involved 21 defendants facing potential prison terms of up to 40,564 years. Fortunately, 16 of the defendants were acquitted, and four of the seven individuals who were initially jailed were released due to insufficient evidence.

Thodex, once the largest crypto exchange in Turkey, collapsed, leaving around 400,000 users without access to their crypto deposits, which amounted to nearly $2 billion. The closure of the exchange caused shockwaves in the country, coinciding with the devaluation of the Turkish lira and subsequent inflation.

The Thodex Collapse and the Vanishing Act

Founded in 2017, Thodex quickly became a prominent player in the Turkish crypto market. However, it all came crashing down when the exchange halted trading operations, initially attributing the pause to an undefined external investment that required a temporary suspension. Soon after, Özer changed his story, claiming that cyberattacks had forced the halt. Despite the closure, he asserted that customer funds were safe and promised to reimburse investors.

Following the collapse of Thodex, Faruk Fatih Özer fled to Albania, where he managed to evade authorities for some time. Eventually, he was located in Vlorë, a major coastal city in Albania, in August 2022.

The Thodex collapse not only left a significant impact on crypto investors but also raised concerns about the security and regulation of the crypto industry in Turkey. The incident unfolded against the backdrop of economic challenges faced by the country, further exacerbating the situation for both traders and ordinary citizens.

Decrypt has reached out to Turkish authorities for comment on the case and will update this article as new information becomes available.

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