Thodex Founder Granted Partial Release in $2 Billion Crypto Fraud Case

The once-celebrated crypto mogul turned convicted fraudster, Faruk Fatih Ozer, the founder of the collapsed Turkey-based crypto exchange Thodex, has secured a partial legal victory.

On Thursday, the Istanbul 22nd Regional Court of Justice ruled to maintain Ozer’s detention on fraud charges. But it dropped allegations of organized crime, according to Ozer’s attorney, Sevgi Eraslan’s press statement.

Ozer, who was sentenced to 11,196 years in prison in September 2023 for allegedly defrauding over 400,000 investors out of $2 billion, remains behind bars despite the partial ruling in his favor.

While Ozer remains in prison, his legal team vows to push for further leniency. “We will follow all legal channels to ensure a fair trial process,” the statement reads.

Erasalan described the court’s decision as a demonstration of the judicial process’s evolving nature, noting each criminal charge must be evaluated “independently” rather than grouped together.

“The presumption of innocence is one of the cornerstones of a democratic state governed by the rule of law,” the statement says. “No person can be declared guilty before the judicial process reaches a final decision.”

The statement also took aim at public perception and media narratives, arguing “comments and prejudices made before the trial process is completed not only undermine trust in the judiciary but also harm the fundamental rights of individuals.”

A $2 Billion Crypto Scandal That Shook Turkey

Ozer’s rise and catastrophic fall is a story that continues to haunt Turkey’s crypto space.

Founded in 2017, Thodex quickly became one of the country’s largest exchanges. It was processing more than $1 billion in daily trading volume at its peak.

But on April 20, 2021, the crypto exchange abruptly halted trading, locking 391,000 traders out of their accounts.

Panic spread as reports emerged that Ozer had fled Turkey, triggering an Interpol Red Notice.

Investigators later discovered that Ozer had fled Turkey, allegedly smuggling a hardware wallet containing $2 billion in crypto.

He later claimed to have emptied it to repay victims before tossing it into the Ionian Sea—a claim that remains unverified.

After a 16-month manhunt, authorities arrested Ozer in Vlora, Albania, in August 2022.

By April 2023, he was extradited to Turkey and charged with fraud, money laundering, and operating a criminal organization.

In September 2023, Ozer and his siblings, Serap and Güven, were handed one of the longest prison sentences in Turkey’s judicial history—11,196 years each.

While initial reports pegged investor losses at $2 billion, the prosecutor’s indictment later revised the figure to $43 million (356 million lira) at the time, now worth about $13 million due to inflation.

He also denied wrongdoing, insisting that he had simply mismanaged the exchange—not deliberately defrauded investors.

Ozer’s prison sentence is set to expire in the year 13,221—but the Thodex scandal is far from over.

Edited by Stacy Elliott.