Key Takeaways
- The Thodex Founder, Faruk Fatih Özer, was discovered dead inside his jail cell while serving an 11,196-year prison sentence.
- Faruk Fatih Özer was convicted of masterminding a $2.6 billion crypto fraud scheme that impacted 400.000 investors.
- Turkish authorities suspect suicide and have launched a formal investigation into the circumstances.
Table of Contents
A Dramatic End to Turkey’s Largest Crypto Fraud Case
Faruk Fatih Özer, crypto exchange Thodex founder, was found dead while in custody at Tekirdag F-Type High Security Prison, a startling end to a case that is one of the most significant fraud cases in crypto history.
The 30-year-old was serving an unprecedented sentence of 11,196 years after committing a fraud scheme that collapsed in 2021 and left around 400,000 investors with no access to their funds. Prison employees found Özer hanging in the bathroom of his single person room during a tour, and authorities quickly launched an investigation into what they suspected to be a suicide.
Read also: Crypto Trader Found Dead in Lamborghini amid Historic Market Crash, Losing $30M
From International Fugitive to Prison Tragedy
The Thodex Founder has experienced a rapid fall from grace after he fled Turkey for Albania in 2021, at which time his exchange collapsed. After an international manhunt and an Interpol Red Notice, he was caught in August of 2022 and extradited back to Turkey in April of 2023.
Özer’s conviction in September of 2023 portrayed one of the longest sentences of its kind in Turkish legal history, following charges including establishing a criminal organization, aggravated fraud, and involvement in money laundering.
The Thodex Founder’s death comes as thousands of victims continue to pursue compensation for losses estimated at $2.6 billion.
Read also: Ex-Binance Exec Tigran Gambaryan Accuses Nigeria Gov of $50M Extortion
Unresolved Questions and Lasting Impact
The passing of the Thodex Founder leaves many unanswered questions around the scale of the fraud and where missing investor funds may be located. Moreover, authorities in Turkey are currently investigating the circumstances surrounding the Founder’s death, though the case highlights a significant reminder and call to action on the risks in underregulated crypto markets and the need for proper oversight of exchange operations.
To this point, the Thodex collapse is still one of the largest crypto exchange failures in history and reflects the need for better protections for investors in the digital asset space.
FAQs
What was Thodex and how did it collapse?
Thodex was one of the biggest crypto exchanges in Turkey, which suddenly stopped withdrawals in April 2021; its founder, Faruk Fatih Özer, went to Albania with about $2.6 billion of the investors’ money while 400,000 other users were left without access to their funds.
How long was Thodex Founder Özer’s prison sentence?
He received an 11,196-year, 10-month, and 15-day sentence, one of the longest in Turkish history, for charges including establishing a criminal organization, aggravated fraud, and money laundering, plus an additional fine of 135 million Turkish lira.
What happens to the missing investor funds now?
The recovery of the estimated $2.6 billion in missing assets remains uncertain following Özer’s death, though Turkish authorities may continue pursuing the case against other convicted defendants, including his siblings, who received identical sentences.
For more crypto crime stories, read: The TimesCrypto Crime Report: Unmasking the New Wave of Sophisticated Crypto Scams
