Thodex founder granted partial release in $2 billion crypto scam case
Thodex Founder Fatih Ozer getting arrested. (Photo via X)
In a significant development in one of Türkiye’s most notorious cryptocurrency fraud cases, Thodex founder Faruk Fatih Ozer received a mixed court ruling that maintained his detention on fraud charges while ordering his release from organized crime allegations, his legal team announced Thursday.
Ozer, who is currently serving an 11,196-year sentence handed down in September 2023, remains at the center of a case involving the alleged scamming of 400,000 investors through his cryptocurrency exchange platform, Thodex.
Attorney Sevgi Eraslan, representing the Ozer family, detailed the court’s decision in a comprehensive statement. “The court has maintained detention for fraud charges while issuing a release decision regarding organized crime allegations,” Eraslan said, emphasizing that the ruling “demonstrates the dynamic nature of the judicial process and the necessity to evaluate each criminal allegation independently,” Eraslan added.
The case’s trajectory began on April 20, 2021, when Ozer, then 27, abruptly fled Türkiye as his cryptocurrency exchange Thodex collapsed. Authorities launched an investigation two days later, leading to an Interpol red notice.
After a 16-month international manhunt, authorities apprehended Ozer in Vlora, Albania, on Aug. 30, 2022, where he was reportedly found at a social gathering, having grown a chest-length beard and carrying camping equipment.
Thodex founder scams $2 billion off investors
During his final days of freedom, investigators discovered Ozer had managed to transport a hardware wallet reportedly containing $2 billion in cryptocurrency through airport security.
He later claimed to have emptied the wallet to repay victims before disposing of it in the Ionian Sea, an assertion that went unaddressed by the Istanbul Superior Court during sentencing.
The case’s financial scale has been subject to varying estimates. While initial media reports suggested losses of approximately $2 billion, the prosecutor’s indictment outlined damages of 356 million lira—equivalent to $43 million at the time of the exchange’s collapse, though now valued at approximately $13 million because of the lira’s depreciation.
The September 2023 verdict, which also implicated Ozer’s siblings, marked one of the longest sentences in Türkiye’s judicial history. Both his sister Serap and brother Guven received identical 11,196-year sentences for their roles in the scheme, which prosecutors say affected 2,027 victims.
Thodex founder’s attorney claims presumption of innocence
“Under universal legal principles, everyone is presumed innocent until proven guilty by a final court decision. The presumption of innocence remains one of the cornerstones of a democratic legal state, ensuring the protection of defendant rights throughout the judicial process,” Thodex founder’s attorney further emphasized the fundamental principles of justice:
The rise and fall of Thodex mirrors a turbulent period in Türkiye’s cryptocurrency market. Founded in 2017 when Ozer was just 22, the exchange rapidly grew to become one of Türkiye’s largest cryptocurrency platforms.
Its collapse in 2021 came at a time when many citizens were turning to cryptocurrencies as a hedge against the lira’s declining value.
Before his downfall, Ozer had cultivated a high-profile image in Türkiye, appearing in photographs with prominent political figures, including ministers.
Educational background of Thodex founder
Despite his earlier claims of business acumen—including stating at trial, “I am smart enough to lead any institution on Earth”—Oster”‘s educational background included dropping out of high school before founding Thodex in Istanbul.
The latest court decision adds another layer to a case that has become emblematic of the risks within Türkiye’s cryptocurrency market and the challenges of regulating digital assets.
While Ozer’s detention continues under fraud charges, his attorney affirmed their commitment to pursuing “all legal avenues to ensure the protection of our clients’ rights and maintain a fair trial process.”
The case, which required 62 arrests and coordinated law enforcement efforts across six countries, continues to be closely watched as a benchmark for cryptocurrency-related fraud prosecution in Türkiye and internationally.
Unless overturned, Ozer’s sentence will expire in the year 13,221.
