Thodex was a large digital asset trading platform that spectacularly collapsed in 2021.

Faruk Fatih Özer, the former CEO of the Turkish cryptocurrency exchange Thodex, has been handed a staggering 11,196-year prison sentence and a $5 million fine by a Turkish court. This severe penalty stems from a slew of charges, including his alleged involvement in the establishment, management, and membership of an organization, qualified fraud, and money laundering.

Thodex, once a prominent digital asset trading platform in Turkey, spectacularly imploded in 2021. The exchange ceased operations abruptly, leaving users in shock as their combined crypto assets, valued at $2 billion, vanished. Özer, the founder of Thodex, fled the country amidst this chaos, and at the time, he vehemently denied any wrongdoing or plans for an exit scam. (COINTELEGRAPH)

However, Özer’s evasion of justice came to an end when he was captured in Albania in August 2022. He was subsequently extradited to Turkey in April 2023, facing charges of fraud and money laundering. This legal saga was compounded by his prior incarceration since July for failing to submit tax documents. The most recent conviction relates to his alleged defrauding of Thodex customers.

In a court statement, Özer maintained his innocence, asserting that Thodex was merely a crypto company that had gone bankrupt and had no criminal intent. He claimed that his track record, including founding a company at the age of 22, demonstrated his capability to manage global institutions. He further contended that the suspects in the case had been victims for over two years.

This protracted legal battle involved 21 defendants, with five appearing in court in person. Sixteen of the defendants were acquitted of “qualified fraud” due to a lack of evidence, and four were ordered to be released. The remaining defendants received varying sentences based on their roles in the alleged fraud.

The Thodex saga represents a significant chapter in the cryptocurrency world, with the former CEO now facing an extraordinary prison sentence and substantial fines.

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