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- Faruk Fatih Özer, Thodex CEO, found dead while serving an 11,000-year sentence.
- Thodex’s collapse spurred major regulatory reforms and stronger investor protections in Turkey.
- The scandal ultimately increased cryptocurrency adoption in the country.
The saga of Thodex, one of Turkey’s most infamous crypto exchanges, has taken a dramatic turn. Faruk Fatih Özer, the former CEO of the now-defunct platform, was found dead in his prison cell on November 1. Serving an 11,000-year sentence for orchestrating one of the largest cryptocurrency scams in history, Özer’s death has brought the Thodex scandal back into the spotlight.
The Rise and Fall of Thodex
Thodex shocked Turkey in April 2021 when it abruptly halted trading and withdrawals, initially claiming a temporary pause for operational improvements. Investigations soon revealed that Özer had fled to Thailand with over $2 billion, prompting raids on the exchange’s offices in Istanbul and the arrest of 62 employees. Özer remained on the run for more than a year before being detained in Albania in August 2022 and extradited to Turkey in April 2023.
The legal case moved swiftly. Within months, Özer received a prison sentence of over 11,000 years and a $5 million fine, while asserting his innocence and claiming he and his family were victims of false accusations.
Impact on Turkish Crypto Regulation
The Thodex scandal had far-reaching consequences for Turkey’s cryptocurrency landscape. Following Özer’s flight, the Central Bank of the Republic of Turkey banned crypto payments and restricted fiat on-ramps for exchanges. Regulatory bodies like MASAK and the Capital Markets Board introduced tighter AML provisions and licensing requirements to protect investors.
Also Read: Turkey Blocks 46 Crypto Sites Including PancakeSwap in Major Regulatory Crackdown
By 2024, new laws strengthened consumer protection and compliance measures, paving the way for more secure crypto trading. Ironically, the upheaval helped increase cryptocurrency adoption, with Turkey leading the Middle East and North Africa in crypto trading value, according to Chainalysis’ 2025 report.
Legacy of the Thodex Scandal
Özer’s death marks a somber chapter in Turkey’s crypto story. While the scandal caused significant financial losses for investors, it also catalyzed regulatory reforms and improved investor protections. The Thodex case remains a cautionary tale of the risks inherent in cryptocurrency markets—and the importance of oversight in a rapidly evolving industry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
