Turkish Cryptocurrency Founder and Siblings Sentenced to Over 11,000 Years Each for Fraud

Faruk Fatih Ozer, founder of the now-defunct Turkish cryptocurrency exchange Thodex, along with his siblings Serap Ozer and Guven Ozer, have received an astounding prison sentence of over 11,000 years each for defrauding investors and money laundering. The case highlights the risks and potential abuses in the largely unregulated world of cryptocurrencies.

Background on Thodex and Ozer

  • Thodex was founded in 2017 by Ozer and quickly became one of Turkey’s largest cryptocurrency exchanges.
  • Ozer gained fame in Turkey as a financial prodigy, starting the exchange when he was just 22 years old.
  • Thodex targeted Turkish investors who were seeking alternatives like cryptocurrency as the Turkish lira plummeted in value.
  • At its peak, Thodex had over 400,000 active users trading billions of dollars worth of crypto assets.
  • Ozer ingratiated himself with pro-government figures and gained allies in the establishment.

Collapse of Thodex

  • In April 2021, Thodex suddenly halted trading and closed down its platform.
  • Ozer fled the country for Albania, absconding with an estimated $2 billion in investor assets.
  • Turkish authorities issued an Interpol red notice for Ozer’s arrest. He was eventually found in Albania and extradited to Turkey in June 2022 after a lengthy legal battle.

Charges and Trial

  • Turkish prosecutors charged Ozer and his siblings with fraud, money laundering, and operating a criminal organization.
  • Ozer was accused of defrauding over 2,000 Thodex investors and misappropriating 356 million Turkish lira, worth around $43 million at the time.
  • Due to rampant inflation in Turkey, that amount is now worth only around $13 million.
  • At trial, Ozer maintained his innocence, stating “I am smart enough to lead any institution on Earth. That is evident in this company I established at the age of 22.”


  • In September 2022, an Istanbul court found all three siblings guilty on multiple counts of fraud and financial crimes.
  • Each was sentenced to over 11,000 years in prison – specifically 11,196 years each.
  • Ozer’s sentence was based on separate convictions on 37 counts affecting 2,027 victims.
  • Prosecutors had sought over 40,000 years for Ozer’s crimes.
  • Such extremely long sentences are possible in Turkey after the abolition of the death penalty in 2004.

Analysis of the Thodex Case

  • The Thodex fraud underscores the risks associated with cryptocurrency exchanges operating in legal gray areas.
  • Thodex took advantage of loose Turkish regulations to bilk investors out of millions, revealing gaps in consumer protections.
  • The case highlights the potential for abuse and manipulation by founders of crypto exchanges.
  • Ozer’s ability to gain allies in government also shows the political influence wielded by these largely unregulated platforms.
  • For Turkish citizens battered by a weak economy, Thodex’s collapse was a financial blow they could ill afford.

Aftermath and Implications

  • The severity of the sentencing indicates the Turkish government’s desire to crack down on cryptocurrency-related fraud.
  • However, some experts say the punishments are meant more as a warning than to be carried out.
  • Ozer still faces additional charges and lawsuits related to Thodex’s collapse and investors’ losses.
  • The long prison terms are similar to those given to controversial Turkish televangelist Adnan Oktar and his followers.
  • Nonetheless, the sentences send a strong message about the consequences of cryptocurrency schemes that defraud investors.
  • The Thodex case may pressure governments worldwide to close regulatory gaps in the cryptocurrency industry.

Frequently Asked Questions

What is Thodex?

Thodex was a Turkish cryptocurrency exchange founded in 2017 by Faruk Fatih Ozer. It grew quickly to become one of Turkey’s largest crypto exchanges before collapsing in April 2021.

What happened to investors’ assets on Thodex?

After halting trading and blocking withdrawals in April 2021, Thodex apparently absconded with billions of dollars worth of investor assets. The exchange’s founder Ozer fled to Albania with the funds.

Why did Ozer and his siblings receive such long prison sentences?

Ozer and his two siblings were found guilty on dozens of counts of fraud, money laundering, and organized crime. Based on multiple convictions against over 2,000 victims, each received a symbolic sentence of over 11,000 years.

Could the Ozer siblings actually serve over 11,000 years in prison?

No, the astronomical sentences are primarily symbolic, stemming from a quirk in Turkish law after the abolition of the death penalty. The prison terms are meant as a warning, though Ozer still faces numerous additional charges.

What lessons does the Thodex case provide?

The Thodex fraud reveals the need for stricter regulations and oversight of cryptocurrency exchanges worldwide. It highlights the potential for abuse by unscrupulous founders and the lack of protections for consumers investing in crypto.


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