Turkish Crypto Exchange Boss and Siblings Sentenced to 11,196 Years
In a dramatic turn of events that shocked the cryptocurrency world, Faruk Fatih Özer, the founder and former CEO of Thodex, once Turkey’s largest crypto exchange, has been sentenced to a staggering 11,196 years, ten months, and 15 days in prison. This hefty sentence comes from Özer’s involvement in a massive cryptocurrency fraud that saw approximately $2 billion vanish into thin air.
But Özer was not alone in facing the wrath of justice. His siblings, older sister Serap Özer and older brother Güven Özer shared the same fate, each sentenced to the same prison term. Additionally, a judicial fine of 135 million Turkish liras (equivalent to around $5 million) was imposed on the trio.
The Rise and Fall of Thodex
Thodex was once the pride of Turkey’s crypto landscape, boasting itself as a prominent cryptocurrency exchange. However, this glory was short-lived, and the collapse of the exchange in April 2021 sent shockwaves throughout the country. Nearly 400,000 users found themselves in a state of panic as they were suddenly unable to access their cryptocurrency holdings.
Initially, the exchange explained its abrupt halt as a response to an “abnormal fluctuation in the company accounts.” Still, the truth was far murkier. Faruk Fatih Özer fled the country, leaving a trail of confusion and suspicion. He claimed to be travelling to meet foreign investors, but authorities soon discovered the extent of the deception.
Investigations unveiled a staggering $2 billion fraud orchestrated by Özer, resulting in Interpol issuing a Red Notice for his capture. It began a two-year international manhunt that ultimately led investigators to Vlorë, a coastal city in Albania. Here, Özer was finally apprehended and deported to Turkey in April.
The courtroom saga began with Özer denying all allegations, claiming he had been framed and that Thodex had gone bankrupt. He argued that there was no evidence of a criminal organisation within the exchange and that he wouldn’t have acted so “amateurishly” if he were genuinely involved in illegal activities.
However, his words couldn’t save him from the consequences of his actions. Alongside his siblings and 21 other defendants, Özer was on the line for a combined potential sentence of over 40,000 years.
The Verdict and Its Aftermath
The Anatolian Ninth High Criminal Court delivered its verdict, acquitting 16 21 defendants and releasing four others due to insufficient evidence. For the remaining defendants, varying prison sentences were handed out, effectively closing the chapter on one of Turkey’s most notorious cryptocurrency scandals.
The Thodex collapse had a profound impact on Turkey’s cryptocurrency landscape. Cryptocurrencies, viewed by many as a hedge against rampant inflation and a declining lira, gained even more traction among Turkish investors. A survey revealed that 58% of these investors saw crypto as a means to accumulate long-term wealth, with 37% using it for value storage.
In response to the cryptocurrency surge, the Turkish central bank intended to tighten monetary policy until inflation was under control. Despite the booming interest in cryptocurrencies, Turkish financial authorities emphasised that these assets remained unregulated, lacking supervision mechanisms or central regulatory authority.
Faruk Fatih Özer’s conviction was a stark warning to those exploiting the cryptocurrency industry for fraud. It underscored the importance of trust and accountability within the cryptocurrency ecosystem and highlighted the need for enhanced regulations to protect investors.
In conclusion, the Thodex scandal and the subsequent sentencing of Özer and his siblings are significant in Turkey’s cryptocurrency history. It serves as both a cautionary tale and a testament to the resilience of the cryptocurrency market. As the crypto world continues to evolve, it remains imperative for users, authorities, and exchanges alike to uphold integrity and transparency to ensure a secure and thriving digital asset environment.
