Turkish Crypto Exchange Founder Gets Mixed Ruling: Organized Crime Charges Dropped, Still Faces Fraud Case

Turkish Court Drops Organized Crime Charges Against Thodex Founder While Maintaining Detention in $43M Crypto Exchange Collapse

  • Istanbul court maintains detention of Thodex founder while dropping organized crime charges.
  • Original $2 billion fraud case value revised to $43 million at time of collapse, now worth $13 million due to inflation.
  • Over 391,000 investors were affected when the exchange suddenly halted operations in 2021.
  • Ozer was captured in Albania after a 16-month manhunt triggered by an Interpol Red Notice.
  • Legal team continues to pursue appeals while emphasizing presumption of innocence principles.

The founder of Turkey‘s defunct cryptocurrency exchange Thodex, Faruk Fatih Ozer, has received a partial legal reprieve as the Istanbul 22nd Regional Court of Justice dismissed organized crime allegations while maintaining fraud charges, according to a statement from his attorney.

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The case, which initially shocked the cryptocurrency industry with allegations of a $2 billion fraud, has seen significant revisions. Prosecutors later adjusted the estimated losses to $43 million at the time of collapse, equivalent to approximately $13 million today due to Turkey’s inflation rates.

Thodex, which processed over $1 billion in daily trading volume at its peak, suspended operations on April 20, 2021, leaving 391,000 investors without access to their funds. The sudden closure triggered a global manhunt for Ozer, who allegedly fled Turkey with a hardware wallet containing investor funds.

“The presumption of innocence is one of the cornerstones of a democratic state governed by the rule of law,” stated defense attorney Sevgi Eraslan, challenging the media narrative surrounding the case. The legal team argues that each criminal charge requires independent evaluation rather than blanket prosecution.

The collapse of Thodex represents one of Turkey’s largest cryptocurrency scandals, resulting in unprecedented 11,196-year prison sentences for Ozer and his siblings in September 2023. Ozer maintains his position that the exchange’s failure resulted from mismanagement rather than deliberate fraud.

Ozer’s capture in Vlora, Albania, in August 2022 followed a 16-month international pursuit. His controversial claim of disposing of the hardware wallet in the Ionian Sea after allegedly repaying victims remains unverified by authorities.

The case continues to influence Turkey’s cryptocurrency regulatory landscape, serving as a cautionary tale for investors and exchanges operating in emerging markets with evolving digital asset frameworks.

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