Thodex CEO Faruk Özer Gets 11,196 Years Jail Sentence Over $2B Crypto Exchange Collapse.

Özer was arrested in Albania in August 2022 following an Interpol red notice. He was then extradited to Turkey in April 2023 to face multiple charges related to his involvement with Thodex.

Thodex CEO Faruk Özer Gets 11,196 Years Jail Sentence Over $2B Crypto Exchange Collapse.

Thodex, one of Turkey’s largest cryptocurrency exchanges, made headlines in April 2021 when it suddenly went offline, and its CEO, Faruk Fatih Özer, went missing. The incident left over 400,000 members unable to access their deposits, totaling approximately $2 billion in cryptocurrencies. It sparked an investigation and a nationwide search for Özer.

After several months on the run, Özer was arrested in Albania in August 2022 following an Interpol red notice. He was then extradited to Turkey in April 2023 to face multiple charges related to his involvement with Thodex. The charges included establishing and managing an organization to commit a crime, being a member of an organization, fraud using information systems, and laundering assets obtained through criminal activities.

The trial against Özer and 20 other defendants began, with the potential for sentences totaling up to 40,564 years in prison. However, the Anatolian 9th Heavy Penal Court announced its verdict on Thursday. Özer, along with his sister Serap Özer and brother Güven Özer, were sentenced to a staggering 11,196 years, 10 months, and 15 days in prison. In addition, a judicial fine of 135 million liras ($5 million approx.) was imposed.

While the sentence may seem incredibly lengthy, it is important to note that in Turkey, the maximum prison period an individual can serve is 30 years—the cumulative sentence results from Turkish law, which allows for the aggregation of sentences for multiple convictions.

Of the 21 defendants, the court acquitted 16, and four of the seven previously jailed individuals were released due to a lack of evidence. The remaining defendants received varying degrees of imprisonment for their involvement in the Thodex case.

The collapse of Thodex and the subsequent legal proceedings have shed light on the risks associated with investing in cryptocurrency exchanges. The incident was a stark reminder of the crypto industry’s lack of regulation and oversight, leaving investors vulnerable to fraud and loss of funds.

The Thodex case also prompted discussions about the need for stricter regulations and measures to protect investors in the cryptocurrency space. Turkish authorities have been working on implementing new regulations to prevent similar incidents and ensure the security of investors’ funds.

As the Thodex case concludes, it serves as a cautionary tale for investors and regulators in the crypto industry. It highlights the importance of due diligence and the need for robust regulatory frameworks to protect participants in the ever-evolving world of cryptocurrencies.

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