Thodex Founder Sentenced to 7 Months in Prison

Turkish prosecutors initially sought a maximum five-year prison term for “smuggling” under the Tax Procedures Act.

Faruk Fetih Özer, founder of once-leading Turkish cryptocurrency exchange Thodex, will serve seven months and 15 days in prison for failing to submit the necessary documents to the Tax Inspection Board.

He also faced fraud charges when the platform crashed in 2021, allegedly pocketing more than $2 billion in client funds. Özer allegedly fled Turkey shortly after the incident, but he was arrested in Albania last summer. If convicted on all counts, his punishment could be harsher.

Özer continues to maintain his innocence

Özer’s case was heard at Anatolia’s 17th Criminal Court of First Instance, where the magistrate initially sentenced him to a year and a half in prison, Freedom Daily reported. They later reduced the punishment based on his behavior, social connections and potential impact on his future.

In addition, the court postponed the announcement of the sentence against Özer and the execution of the order.

Thodex’s founder again claimed his innocence, explaining that he was not the leader of the company at the time of the alleged crime. He added that a previously appointed trustee prevented him from producing the requested records.

Legal proceedings against Özer were initiated in October 2021 when Turkish authorities urged him to produce certain documents related to his activities at Thodex, after the exchange’s founders failed to do so within the stipulated legal deadline.

his other questions

In addition to the aforementioned crimes, Özer faces several other charges that could see him spend the rest of his life in prison.

The failed investor and prosecutors insist he played a major role in the spring 2021 collapse of the Thodex platform after it ceased trading services. 400,000 customers were unable to withdraw funds, and Özer allegedly left the country with more than $2 billion in user funds.

The fugitive was reportedly detained in Albania in August 2022 after more than a year on the run. Albanian and Turkish officials negotiated his deportation, and he returned to his home country in April. If convicted, Özer faces a ludicrous 40,000 years in prison.

The 29-year-old denied all allegations last month, claiming he was “set up”. He also argued that some of his former Thodex employees, including his two siblings, were “unlawfully” imprisoned.