Thodex founder’s sentence overturned, but fraud conviction stands

The regional court of justice of Istanbul canceled part of the conviction against Faruk Fatih Özer, founder of the exchange of cryptocurrency, now disappeared, Thodex.

The court rejected the accusations linked to the start of an organization to commit a crime but confirmed its condemnations of fraud and money laundering, according to to local reports.

Özer, who was sentenced to more than 11,190 years in prison for alleging more than 400,000 investors out of $ 2 billion, remains incarcerated.

However, the appeal decision means that it will no longer serve the accusations related to organized crime. The court also ordered a new trial on certain aspects of the case, referring it to a lower court.

Despite the decision, the court determined that Özer should remain in detention for other crimes.

Thodex collapses

Thodex collapsed in April 2021 after having suddenly interrupted withdrawals, leaving users unable to access their funds.

The authorities later determined that Özer had fled to Albania, where he was decree in 2022 and extradited In Türkiye in 2023. His legal team is now pressure for more leniency, arguing that his conviction was disproportionate.

Özer has been accused of having thrilled thousands of investors and money laundering through Thodex. After the scholarship suddenly ceased the operations, he fled to Albania, saying that he was obtaining funds from foreign investors.

At the start, he promised to cooperate With the Turkish authorities and the return of customer funds. However, he later said that he was the victim of a cyber attack that exhausted the assets of the exchange. His disappearance sparked a criminal investigation, an international man’s hunting, and demonstrations against investors fearing to have lost their savings.

Thodex was one of the largest cryptocurrency scholarships in Turkey, with more than 400,000 users and a daily negotiation volume of around $ 585 million.