Thodex Founder Faces Prison Sentence Over Missing Documents And Lost Billions

Key Points:

• Thodex founder sentenced to 7 months for document failure.
• The Turkish crypto exchange collapse leaves $2 billion in losses.
• Özer maintains innocence and faces fraud accusations.

The founder and former CEO of Thodex, Faruk Fatih Özer, has been sentenced to seven months and 15 days in prison for failing to submit requested documents during his trial.

Thodex, once a prominent cryptocurrency exchange in Türkiye, abruptly shut down, leaving investors with approximately $2 billion in lost cryptocurrencies.

Özer, who had previously been detained and later fled to Albania, was apprehended and deported back to Türkiye following a Red Notice by Interpol. Throughout the trial, Özer maintained his innocence but failed to provide the requested documents to the Tax Inspection Board.

He argued that he was not the official representative of Thodex during the specified period and, therefore could not present the requested books. Özer claimed that a trustee had been appointed to manage the business on his behalf during that time.

Initially, Özer faced potential charges of “smuggling” under the Tax Procedure Law, which could have led to a five-year prison sentence. However, the court initially sentenced him to one year and six months, which was later reduced to seven months and 15 days, taking into account factors such as Özer’s social relations and conduct during the trial.

Apart from tax-related charges, Özer also faces accusations of defrauding Thodex investors, and a hearing on these claims is pending.

As the legal proceedings continue, the case of Faruk Fatih Özer and Thodex serves as a reminder of the complexities surrounding cryptocurrency regulation and taxation. It highlights the need for transparency, accountability, and robust regulatory frameworks to protect investors and ensure the integrity of digital asset exchanges.

In a related context, a recent study by Swedish crypto tax firm Divly revealed that a vast majority of crypto investors, approximately 99.5%, did not pay taxes in 2022. While some countries like Finland and Australia had a small percentage of crypto investors fulfilling their tax obligations, the report acknowledged the limitations of using search volume data to estimate the actual number of crypto taxpayers.

Notwithstanding these developments, Özer’s legal troubles are far from done, as he is still accused of scamming Thodex investors and is awaiting a hearing to answer these claims. The entrepreneur maintains his innocence and claims that the accused have set him up.

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