TLDR
- Ozer was found hanged in his solitary cell at Tekirdağ Prison.
- He was serving 11,196 years for fraud and money laundering.
- Thodex collapse left 400,000 users with $2.6 billion in losses.
- Officials have launched an investigation into his suspected suicide.
Faruk Fatih Ozer, founder of the collapsed Turkish cryptocurrency exchange Thodex, was found dead in his cell at Tekirdağ F-Type High Security Prison. Authorities suspect suicide but have begun an investigation. Ozer was serving an 11,196-year sentence for fraud, money laundering, and leading a criminal organization linked to Thodex’s collapse.
Thodex Founder Found Dead in Prison
Faruk Fatih Ozer, the 30-year-old founder of Turkey’s now-defunct cryptocurrency exchange Thodex, was found dead inside his solitary cell at the Tekirdağ F-Type High Security Closed Prison. Local media reported that he was discovered hanging in the bathroom during an inspection by prison staff.
Justice Minister Yılmaz Tunç confirmed that an investigation had been launched. “The exact cause of death will be determined as a result of the investigation,” Tunç said in a statement. “But currently, the initial findings indicate that it was a suicide.” Ozer’s body was sent to the Institute of Forensic Medicine for an autopsy to confirm the cause of death.
Officials said Ozer was being held in a single-person cell, and early reports suggest he was found unresponsive during routine checks. Tekirdağ Prison has previously faced criticism from rights groups for its isolation conditions, which have raised concerns among human rights observers.
From Crypto Success to Sudden Collapse
Ozer launched Thodex in 2017, during a period when cryptocurrency trading was rapidly gaining popularity in Turkey. The platform quickly became one of the country’s leading exchanges, attracting hundreds of thousands of users with promises of security and fast transactions.
In April 2021, Thodex abruptly stopped trading, initially citing technical maintenance. However, the company’s social media accounts were soon closed, and its website went offline. Reports later revealed that Ozer had left Turkey a day before the shutdown, sparking widespread allegations of fraud and triggering one of the country’s largest financial investigations.
More than 400,000 users were unable to access their digital assets after the exchange’s collapse. A 2021 Chainalysis report estimated user losses at about $2.6 billion, though other sources put the figure lower. Authorities accused Ozer of moving customer funds to personal accounts and manipulating transactions.
Legal Proceedings and Long Prison Sentence
Following his departure, Turkish authorities issued an Interpol “red notice” for Ozer, leading to his arrest in Albania in August 2022. After months of legal proceedings, he was extradited to Turkey in April 2023.
In September 2023, an Istanbul court found Ozer guilty of aggravated fraud, money laundering, and leading a criminal organization. He, along with his brother and sister, received prison sentences of 11,196 years, 10 months, and 15 days each. The court also imposed fines totaling ₺135 million (about $5 million).
Of the 21 defendants involved in the case, 16 were acquitted due to a lack of evidence, while others received shorter sentences. Prosecutors described the Thodex collapse as one of Turkey’s largest cryptocurrency-related fraud cases, saying that user assets had been transferred abroad and concealed in digital wallets.
Investigation into His Death and Case Aftermath
Authorities are continuing to investigate Ozer’s death. Early reports suggest no evidence of foul play, but officials have stated that all possible causes are being examined. The Justice Ministry said the final report from forensic experts will determine whether suicide was the confirmed cause.
Ozer’s death comes just over a year after his sentencing, closing a chapter in one of Turkey’s most high-profile financial crime cases. The Thodex scandal not only led to stricter oversight of crypto exchanges but also raised questions about investor protection in the rapidly growing digital asset market.
Thousands of affected investors are still awaiting updates on the recovery of their lost funds. For now, Ozer’s death leaves many questions unanswered about the full extent of the Thodex losses and the potential recovery process for victims.
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