Thodex Founder Faruk Fatih Ozer Found Dead in Turkish Prison While Serving 11,196-Year Sentence

Thodex Founder Faruk Fatih Ozer Found Dead in Turkish Prison While Serving 11,196-Year Sentence

Summary: Faruk Fatih Ozer, the founder and former CEO of the failed Turkish crypto exchange Thodex, has been found dead in his prison cell. His passing ends a significant chapter in one of Türkiye's largest cryptocurrency scandals, which involved staggering losses for investors and has led to increasing scrutiny of crypto regulations in the country.

Key Takeaways:

Founder Faruk Fatih Ozer was discovered dead while serving an 11,196-year sentence.
Ozer's death marks the conclusion of one of the biggest crypto scandals in Türkiye, where over ₺356 million ($12.5 million) in investor funds went missing.
An investigation is underway, reflecting Türkiye's intensifying approach to cryptocurrency regulation.

Ozer was found hanging in his bathroom during a routine inspection by prison staff, with initial reports indicating a possible suicide as the cause of death, according to Türkiye Today.

A Historic Sentence for Ozer

Faruk Fatih Ozer was sentenced to an extraordinary 11,196 years, 10 months, and 15 days following his conviction on multiple charges, including the formation and leadership of a criminal organization, aggravated fraud, and money laundering. His siblings, Guven and Serap Ozer, were also convicted on similar charges and received the same lengthy sentences.

This case stands as one of the largest fraud scandals associated with cryptocurrency in Türkiye. Thodex, established in 2017, had gained prominence among the nation's crypto exchanges but ceased operations abruptly in April 2021, citing a “temporary suspension.”

Shortly after this announcement, Ozer fled to Albania, reportedly taking millions in investors' funds with him. He was captured in Albania in August 2022 after an international manhunt and was extradited to Türkiye in April 2023.

Prosecutors accused Ozer of defrauding over 400,000 investors, claiming that ₺253.7 million ($8.9 million) worth of crypto assets had been transferred to wallets owned by him and his associates, including accounts based in Malta. The Financial Crimes Investigation Board (MASAK) reported total damages from the Thodex collapse amounting to ₺356 million ($12.5 million). This incident sparked significant public outrage and initiated a call for tighter regulation of the cryptocurrency sector in Türkiye.

The Anadolu Chief Public Prosecutor's Office indictment cited how Thodex enticed users with promotions before abruptly halting withdrawals. In total, twenty-one defendants were tried, with seven detained and sixteen acquitted due to insufficient evidence.

Ozer's death concludes a troubling saga that has greatly affected the Turkish cryptocurrency landscape, left countless investors in despair, and is now subject to a formal investigation by officials.

Turkey Emerges as the Leading Crypto Market in MENA

Recent reports indicate that Türkiye has established itself as the largest cryptocurrency market within the Middle East and North Africa (MENA), with annual transactions approaching $200 billion, as per data compiled by Chainalysis. This figure is approximately four times greater than that of the United Arab Emirates, which ranks second with $53 billion. Analysts suggest that much of Türkiye's cryptocurrency activity is driven by short-term trading rather than by long-term engagement.

The Chainalysis 2025 Crypto Adoption Report emphasizes that cryptocurrency has become both a haven for financial security and a speculative avenue for Turks dealing with high inflation and a depreciating lira. Since 2021, Türkiye’s total inflows into cryptocurrencies have surpassed $878 billion, making it one of the globe's most vibrant markets. Nevertheless, despite this remarkable growth, there has been a slight decline in retail participation, as larger institutional players become more prominent in the market.