The founder of Thodex has committed suicide! Sentenced to 11,196 years in prison for defrauding 400,000 people, facing the end.

The founder and former CEO of the Turkish crypto assets exchange Thodex, Faruk Fatih Ozer, was found dead in a single cell in the F-type high-security closed prison in Tekirdağ. Authorities stated that during the inspection, Ozer was found hanged in the bathroom, with preliminary reports indicating that suicide is likely the cause of death. Ozer was sentenced to 11,196 years in prison for multiple crimes.

Thodex From Leading Exchange to Scam Collapse

(Source: X)

Thodex was established in 2017 and once ranked among the country's leading crypto assets exchanges, but it suddenly ceased operations in April 2021, citing “temporary suspension”. Shortly thereafter, Ozer fled to Albania, allegedly taking investors' funds with him. In August 2022, after an international manhunt, he was arrested in Albania and extradited to Turkey in April 2023.

The collapse model of Thodex is a typical exit scam. The exchange attracted a large number of users through promotional activities and low transaction fees during its operation, accumulating a massive amount of user assets. In April 2021, at the peak of the bull market in the crypto market, Thodex suddenly announced “technical maintenance” and suspended all withdrawals. Subsequently, Ozer disappeared, and users found it impossible to retrieve their funds.

Prosecutors accused him of defrauding more than 400,000 investors and claimed that crypto assets worth 253.7 million lira (8.9 million USD) were transferred to wallets controlled by Ozer and his accomplices, including accounts in Malta. The Turkish Financial Crimes Investigation Board (MASAK) reported that the total loss reached 356 million lira (approximately 12.5 million USD). The collapse of Thodex sparked widespread outrage, marking a turning point in Turkey's cryptocurrency regulation and leading to calls from various sectors for increased oversight of the industry.

In the indictment prepared by the Chief Prosecutor's Office of Anadolu, authorities outlined how Thodex lured users through promotional activities and then suddenly froze withdrawals. A total of 21 defendants were on trial, of which 7 were detained and 16 were acquitted due to insufficient evidence. The outcome of this trial indicates that, apart from Ozer and his core team, some employees may not have been aware or deeply involved in the fraudulent scheme.

Thodex Fraud Case Timeline

2017: Thodex was established and gradually became Turkey's leading exchange.

April 2021: Suddenly announced the suspension of operations, Ozer fled to Albania.

August 2022: Ozer was arrested in Albania by Interpol.

April 2023: Extradited back to Turkey for trial

2024: Sentenced to 11196 years in prison

2025: Committed suicide in prison.

The Legal Logic Behind the Rare Sentences of 11196 Years in Prison

Ozer was sentenced to a historic term of 11,196 years, 10 months, and 15 days for multiple crimes, including establishing and leading a criminal organization, serious fraud, and money laundering. His brothers, Jewan Ozer and Serap Ozer, were convicted of similar charges and received the same sentence. The reason this sentence is so astonishing is that Turkish law imposes separate sentences for each crime, which are then accumulated.

A 11,196-year prison sentence is extremely rare in global criminal cases, far exceeding human lifespan. This symbolic ultra-long sentence is used in Turkey and certain other jurisdictions to express condemnation of extremely serious crimes. It ensures that even if the offender receives a commutation or pardon for certain offenses, they still have to serve the remaining substantial portion of their sentence, which is effectively equivalent to life imprisonment with no possibility of parole.

For the victims of Thodex, this prison sentence provides some psychological comfort, but it cannot recover the economic losses. Although Turkish authorities have recovered some assets, it is far from enough to fully compensate all victims. Many investors had stored their life savings in Thodex and fell into financial difficulties after the collapse. The accumulation of such personal tragedies makes the Thodex case not just a legal issue, but also a social issue.

Ozer's death in prison tragically concluded this scandal. According to local news media “Today Turkey”, authorities stated that during an inspection, Ozer was found hanged in the bathroom, with preliminary reports indicating that suicide was likely the cause of death. An official investigation into his cause of death has been launched. Faced with a prison sentence of 11196 years and the grim reality of never being released, Ozer chose to end his life. This outcome, while lamentable, has sparked discussions about the punishment mechanisms for crypto fraud.

Turkey's Crypto Assets Market $200 Billion Trading Volume and Regulatory Turning Point

The death of Ozer marked a tragic end to an event that shocked the Turkish Crypto Assets sector and left thousands of investors at a loss. Authorities have launched an investigation into the case, which continues to impact Turkey's increasingly stringent stance on Crypto Assets regulation. The case remains one of the largest Crypto Assets-related fraud scandals in Turkey.

The annual trading volume of the Turkish crypto assets market reached $200 billion, leading by far in the Middle East and North Africa region. According to the latest data from Chainalysis, Turkey has solidified its position as the largest crypto assets market in the Middle East and North Africa, with an annual trading volume close to $200 billion. This figure is about four times that of the second-ranking UAE, which stands at $53 billion. Analysts say that most of the activity in Turkey is still driven by short-term trading rather than long-term applications.

The “2025 Cryptocurrency Adoption Report” released by Chainalysis highlights how Crypto Assets have become a financial refuge and speculative avenue for Turks facing high inflation and the depreciation of the lira. Since 2021, the total inflow of funds in Turkey has exceeded $878 billion, making it one of the most active markets in the world. Although the retail market has grown, retail participation is cooling off, with a slight decline in both small and large retail transactions, while institutional investors dominate.

Turkey's high adoption of Crypto Assets is closely related to its economic difficulties. The Turkish Lira has experienced severe devaluation over the past few years, with inflation rates exceeding 80% at one point. In this environment, the Turkish public views Crypto Assets as a tool for value preservation and speculative opportunities. However, the collapse of Thodex exposed the risks behind this frenzy.

The Thodex case has become a turning point for Turkey to strengthen its encryption regulation. Prior to this, Turkey's crypto market was basically in a regulatory vacuum. After the collapse of Thodex, the Turkish government accelerated the legislative process, requiring exchanges to register, accept regulation, and provide protective measures for customer assets. Although this tightening of regulation increases compliance costs, it is crucial for protecting investors and establishing market trust.

The Thodex case provides a painful lesson for the global Crypto Assets market. The custody risks of centralized exchanges always exist, and investors should prioritize regulated platforms that offer insurance protection. The saying “Not your keys, not your coins” has been validated once again in the Thodex case. 400,000 victims entrusted their assets to the exchange, ultimately losing everything; such a tragedy should not be repeated.

The passing of Ozer, while it has concluded this legal process, cannot heal the pain of the victims. Many investors are still waiting for their assets to be recovered, while most of the funds are already irretrievable. This case has become the darkest chapter in the history of crypto in Turkey and serves as a cautionary tale for global crypto investors.