- September 9, 2023
- Posted by: [email protected]
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Faruk Fatih Özer, the mastermind behind the now-defunct Turkish cryptocurrency exchange Thodex, along with his siblings Serap Özer and Güven Özer, have been handed a mind-boggling prison sentence of 11,196 years, 10 months, and 15 days, as per reports from local media outlets. Additionally, a judicial fine amounting to 135 million Turkish liras, or approximately $5 million, has been imposed by the court.
Thodex had once been a titan in Turkey’s cryptocurrency exchange realm, boasting a vast user base. However, in April 2021, it shockingly halted its operations, leaving over 400,000 perplexed users unable to access their deposits, totaling a staggering $2 billion in diverse cryptocurrencies. This abrupt closure coincided with the mysterious disappearance of Faruk Fatih Özer, prompting a large-scale investigation into the exchange’s activities.
As investigations unraveled the intricacies of this case, it was discovered that Özer had fled to Albania. However, his international escape was cut short when he was apprehended in August 2022 in Albania, following an Interpol red notice issued against him. Subsequently, in April 2023, Özer was successfully extradited to Turkey, where he was taken into custody by law enforcement.
The litany of charges leveled against Faruk Fatih Özer was both grave and multifaceted. He was accused of establishing and managing an organization with the intent to commit crimes, being a member of a criminal organization, fraud perpetrated through information systems linked to banks or credit institutions, fraud involving merchants, company executives, and cooperative managers, as well as money laundering stemming from the proceeds of criminal activities.
The legal ramifications of the Thodex case were far-reaching, extending to the detention of Özer’s siblings and four other high-ranking employees. Moreover, the comprehensive investigation into the cryptocurrency exchange’s collapse led to the detention of at least 83 individuals. At the onset of the trial, a staggering 21 defendants faced the grim prospect of receiving severe sentences, potentially totaling an astonishing 40,564 years in prison.
Nonetheless, as the trial drew to a close, the Anatolian 9th Heavy Penal Court delivered its verdict. Astonishingly, 16 of the 21 defendants were acquitted of the charges against them. Additionally, four of the seven individuals who had been in custody due to their alleged involvement were released due to a lack of compelling evidence. However, the remaining defendants received prison sentences commensurate with the gravity of their offenses.
The Thodex debacle sent shockwaves reverberating across Turkey, where cryptocurrencies had gained favor as a hedge against rampant inflation and the precipitous devaluation of the Turkish lira. This high-profile case served as a stark reminder of the regulatory challenges and potential hazards lurking within the cryptocurrency industry, catalyzing authorities to bolster their oversight and regulation of digital assets within the nation.
