Faruk Fatih Özer, the founder and former CEO of now-defunct crypto firm Thodex, has been sentenced to seven months and 15 days for not providing papers needed during the trial. Özer held his innocence throughout the trial by claiming he was not a corporate official at the time of the alleged conduct. He said that he could not give the required books to the Tax Inspection Board since a trustee had been appointed to run the business during the time.

Thodex CEO maintains his innocence amid allegation

Before Thodex abruptly shut down and the founder fled to Albania, it was once among the largest cryptocurrency exchanges in Turkey. After Interpol issued a Red Notice, he was deported to Turkey and arrested on April 20 to face charges for the investors’ nearly $2 billion worth of cryptocurrency.

The first request from Özer’s prosecutor was for a five-year prison term for “smuggling” per the Tax Procedure Law. The Thodex founder first received a one-year, six-month sentence, then lowered to seven months, fifteen days. Azer’s interpersonal relationships, general conduct, and demeanor throughout the trial were highlighted as factors contributing to the sentence reduction.

Özer also awaits a hearing on the purported claims of cheating Thodex investors and tax-related issues. The entrepreneur still denies the claims and says the defendants framed him. Notably, the Thodex founder made his first defense on June 12, whereby 21 defendants were present.

The Thodex debacle

Thodex, which had been in operation since 2017, unexpectedly stopped trading in April 2021, claiming an undisclosed outside investment that called for a four- to five-day stoppage in trade. A day later, Özer disclosed that hackers had caused the firm to suspend trading, but he stressed that investor funds were secure and would be returned soon. However, this never happened. The firm has received complaints from thousands of Thodex users who claim they cannot access their accounts and are concerned that their funds may be lost forever.

The company’s computers were then taken, its accounts were frozen, and Turkish authorities imprisoned 62 workers on the same day. Although the founder had already fled to Albania at this time, the Turkish government was getting ready to extradite him. However, the manhunt went on for months. Ultimately, he was located in Vlor, Albania’s third-most populated seaside city, whereby the results of the biometric testing confirmed his identity.

In April 2021, it came to light that Thodex had transferred $125 million in Bitcoin to the American exchange Kraken before closing. Whitestream, a blockchain tracking company, claimed it seemed to be a “cash out operation,” with executives stealing money from customers.

Faruk Fatih Özer, the founder and former CEO of now-defunct crypto firm Thodex, has been sentenced to seven months and 15 days for not providing papers needed during the trial. Özer held his innocence throughout the trial by claiming he was not a corporate official at the time of the alleged conduct. He said that he could not give the required books to the Tax Inspection Board since a trustee had been appointed to run the business during the time.

Thodex CEO maintains his innocence amid allegation

Before Thodex abruptly shut down and the founder fled to Albania, it was once among the largest cryptocurrency exchanges in Turkey. After Interpol issued a Red Notice, he was deported to Turkey and arrested on April 20 to face charges for the investors’ nearly $2 billion worth of cryptocurrency.

The first request from Özer’s prosecutor was for a five-year prison term for “smuggling” per the Tax Procedure Law. The Thodex founder first received a one-year, six-month sentence, then lowered to seven months, fifteen days. Azer’s interpersonal relationships, general conduct, and demeanor throughout the trial were highlighted as factors contributing to the sentence reduction.

Özer also awaits a hearing on the purported claims of cheating Thodex investors and tax-related issues. The entrepreneur still denies the claims and says the defendants framed him. Notably, the Thodex founder made his first defense on June 12, whereby 21 defendants were present.

The Thodex debacle

Thodex, which had been in operation since 2017, unexpectedly stopped trading in April 2021, claiming an undisclosed outside investment that called for a four- to five-day stoppage in trade. A day later, Özer disclosed that hackers had caused the firm to suspend trading, but he stressed that investor funds were secure and would be returned soon. However, this never happened. The firm has received complaints from thousands of Thodex users who claim they cannot access their accounts and are concerned that their funds may be lost forever.

The company’s computers were then taken, its accounts were frozen, and Turkish authorities imprisoned 62 workers on the same day. Although the founder had already fled to Albania at this time, the Turkish government was getting ready to extradite him. However, the manhunt went on for months. Ultimately, he was located in Vlor, Albania’s third-most populated seaside city, whereby the results of the biometric testing confirmed his identity.

In April 2021, it came to light that Thodex had transferred $125 million in Bitcoin to the American exchange Kraken before closing. Whitestream, a blockchain tracking company, claimed it seemed to be a “cash out operation,” with executives stealing money from customers.