Crypto exchange boss found dead in Turkish jail, state media confirms

Faruk Fatih Ozer, the former CEO of collapsed cryptocurrency exchange Thodex, has been found dead in his prison cell in the western Turkish city of Tekirdag.

Summary

• Thodex founder Faruk Fatih Ozer found dead in Turkish prison cell.
• Ozer was serving an 11,196-year sentence for fraud and criminal activity.
• Officials suspect suicide.

State-run broadcaster TRT reported the news on Saturday. An investigation is under way and officials are focusing on the possibility that Ozer committed suicide.

The 31-year-old was serving an 11,196-year prison sentence for crimes including fraud and leading a criminal organization following Thodex’s collapse in 2021.

Thodex imploded after final promotional campaign

Ozer founded Thodex in Istanbul in 2017 as a high school dropout. The platform grew to become one of Turkey’s biggest crypto exchanges with approximately 390,000 to 400,000 users.

The exchange was the only platform in Turkey at the time to offer Bitcoin ATM services.

Thodex ran its final promotional campaign from March 15 to April 15, 2021, and offered free Dogecoin to new users.

Around 4 million tokens were distributed. The campaign coincided with “Dogeday” on April 20, 2021, when Dogecoin’s price increased by 20%.

On April 20, 2021, users began experiencing transaction disruptions. Thodex claimed the issues were from a cyberattack. The following day, trading halted entirely and users could no longer access their accounts.

While the prosecutor’s initial indictment estimated total losses at around $24 million, Turkish media reported figures as high as $2 billion. Blockchain analytics firm Chainalysis estimated losses at $2.6 billion.

Ozer captured after fleeing to Albania

Ozer fled to Albania after the company’s collapse. An Interpol international arrest warrant was issued in April 2021. He was arrested in Albania on August 30, 2022, after more than a year on the run.

An Albanian court ordered his extradition to Turkey in 2022. Ozer was extradited in April 2023 and detained by police upon arrival.

On September 7, 2023, an Istanbul court found Ozer guilty on multiple charges including aggravated fraud, leading a criminal organization, money laundering, and being a member of an organization.

He was sentenced to 11,196 years, 10 months, and 15 days in prison and fined 135 million Turkish liras.