Thodex Founder Found Dead in Turkish Prison Amid Crypto Fraud Case

Turkey’s crypto community is reeling after Faruk Fatih Özer, founder of the collapsed digital exchange Thodex, was found dead in his prison cell, reviving national attention on one of the country’s largest financial scandals.

Good to Know

• Özer was serving an 11,196-year prison sentence over a multi-billion lira crypto fraud case.
• Authorities said he was found hanging in his cell at Tekirdağ High Security Prison.
• An autopsy and official investigation are now underway.

According to TRT, Turkey’s national broadcaster, Özer was discovered on November 1 at the Tekirdağ No. 1 F Type High Security Closed Penal Institution. Officials said he was found hanging from a bedsheet tied to his bathroom door. His body was transferred to the Forensic Medicine Institute for autopsy, while prosecutors launched a formal investigation into the circumstances of his death.

Özer, once hailed as a rising tech entrepreneur, became the face of Turkey’s most notorious crypto scandal after the collapse of Thodex in 2021. The exchange abruptly shut down operations, leaving hundreds of thousands of investors unable to access their funds. Prosecutors later alleged that the company falsified digital asset transactions and defrauded investors on a massive scale.

The Anatolian Chief Public Prosecutor’s Office charged 21 people, including Özer, with forming and managing a criminal organization, committing qualified fraud, and laundering illicit funds. The indictment sought prison sentences ranging from 12,164 to 40,562 years for the defendants.

After fleeing to Albania in 2021, Özer was captured in August 2022 and extradited back to Turkey in April 2023. In September 2023, the Anatolian 9th High Criminal Court sentenced him to over 11,000 years in prison for fraud-related offenses.

However, the Istanbul Regional Court of Justice later overturned part of the verdict, acquitting him of organizing a criminal network but maintaining his imprisonment for fraud and money laundering. The retrial of the 21 co-defendants was still ongoing when his death occurred.

Thodex’s collapse remains one of the biggest crypto scandals in Turkey’s history, sparking debate about the need for tighter oversight and investor protection in the country’s booming digital asset market. Despite the controversy, interest in crypto trading remains high, with Turkish citizens continuing to seek digital assets as a hedge against inflation and currency volatility.

FAQ

Who was Faruk Fatih Özer?

He was the founder of Thodex, a now-defunct Turkish cryptocurrency exchange accused of defrauding investors through fake transactions.

What was Thodex accused of?

Prosecutors said the platform misled users, manipulated trade data, and laundered money, resulting in massive investor losses.

What was Özer’s sentence before his death?

He was sentenced to 11,196 years in prison by a Turkish court in 2023 for fraud and related charges.

What happens next in the case?

Authorities are investigating his death while the retrial of Thodex’s other defendants continues.