How Faruk Özer Led Thodex into the Abyss – Turkey's Biggest Cryptocurrency Exchange Crisis

The Thodex case marks a turning point in the Turkish cryptocurrency landscape. After the crypto exchange collapsed in 2021 and over 400,000 investors were defrauded, the scandal led to drastic regulatory consequences. On November 2nd, founder Faruk Fatih Özer was found dead in his solitary cell at the high-security Tekirdağ F-Type Prison. According to local media reports, all signs point to suicide by hanging. Özer served one of the longest prison sentences in Turkish judicial history: 11,196 years, 10 months, and 15 days.

From Market Leader to Crisis – The Rise and Fall of Thodex

Thodex was founded in 2017 and grew rapidly to become one of Turkey’s leading crypto platforms. The turning point came in April 2021 when the exchange unexpectedly froze all withdrawals and cited a “temporary trading interruption.” What followed was one of the biggest scams in the crypto sector: Özer fled with allegedly millions in cryptocurrencies to Albania.

International authorities responded quickly. In August 2022, Özer was arrested, and a year later, in April 2023, he was extradited to Turkey. Investigations revealed a shocking scale of fraud: over 400,000 investors were harmed. The financial damage amounted to approximately 356 million Turkish Lira—about $12.5 million USD, according to Turkey’s financial investigation authority MASAK. A large portion of these funds was transferred via wallets owned by Özer and his confidants.

Judicial Proceedings and Broader Consequences

The criminal justice system was rigorous: alongside Faruk Özer, his siblings Guven and Serap Özer were convicted and received identical prison sentences. In total, 21 individuals stood trial. The verdict was severe—seven were incarcerated, while 16 were acquitted due to insufficient evidence.

Thodex Shock as a Catalyst for Regulation

The collapse of Thodex triggered a turning point in Turkish crypto policy. The government significantly increased its oversight and introduced stricter reporting requirements as well as more intensive regulatory controls. Despite the loss of trust among many retail investors, Turkey remains one of the most active crypto markets worldwide.

Current figures underscore this dominance: According to the Chainalysis Crypto Adoption Report 2025, Turkey recorded transactions totaling approximately $200 billion last year—about four times as much as the second-ranked region, the United Arab Emirates. Turkey thus remains the largest crypto market in the MENA region.

The reasons lie in structural economic factors: persistent inflation and the weakness of the Turkish Lira drive investors to secure part of their wealth in cryptocurrencies. Despite the Thodex scandal and increased regulation, the Turkish market remains resilient and continues to be attractive for international and local players.

Important Note: Cryptocurrencies are highly volatile, unregulated investment products. Your capital is subject to significant risks.