Founder of Turkish failed crypto exchange Thodex sentenced to 11,196 years in jail: report

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By BitcoinWiki News

Key Takeaways:

  • The founder of Thodex, a collapsed cryptocurrency exchange in Turkey, has been sentenced to 11,196 years in prison by a Turkish court
  • He was convicted of several crimes, including fraud
  • The court also sentenced his two siblings to similar jail terms
  • The exchange collapsed in 2021, causing more than 400,000 users to lose funds
  • The founder went missing and reportedly fled to Albania, but was extradited back to Turkey
  • Chainalysis estimated the total losses at the exchange to be $2.52 billion, representing 90% of the global value lost to rug pulls in 2021
  • The article is provided for informational purposes only and does not offer any legal, tax, investment, financial, or other advice

Title: Founder of Thodex Cryptocurrency Exchange Sentenced to 11,196 Years in Prison for Fraud

Introduction:
The founder of Thodex, a cryptocurrency exchange in Turkey that collapsed in 2021, has been sentenced to 11,196 years in prison by a Turkish court. This comes after Faruk Fatih Ozer and his two siblings were found guilty of several crimes, including fraud, money laundering, and leading a criminal organization.

Background:
Thodex was once one of the largest exchanges in Turkey but abruptly halted trading in April 2021, resulting in the loss of funds for over 400,000 users. Ozer went missing at that time and reportedly fled to Albania, but he was later extradited back to Turkey earlier this year.

Legal Proceedings:
A court in Istanbul has now handed Ozer an astonishing 11,196-year prison sentence, along with his two siblings who were also involved in the operations of Thodex. The charges against them include aggravated fraud, money laundering, and leading a criminal organization.

Scope of the Crime:
Initially, the prosecutor’s indictment estimated the loss at Thodex to be around $24 million. However, according to Chainalysis, a blockchain analysis firm, the losses were estimated to be a staggering $2.52 billion. This figure represents approximately 90% of the total global losses caused by similar fraudulent schemes known as “rug pulls” in 2021.

Investigation and Arrests:
During the initial investigation, Turkish police detained 62 individuals in connection with the collapse of Thodex. The court proceedings and subsequent sentences mark significant progress in holding those responsible accountable for their actions.

Conclusion:
The sentencing of Faruk Fatih Ozer and his siblings to lengthy prison terms serves as a warning to individuals involved in fraudulent activities within the cryptocurrency industry. The Thodex case highlights the importance of regulation and oversight to protect investors and maintain trust in the crypto market.

Disclaimer:
This article is for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.

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