Turkey Seeks Jail Sentences of over 40,000 Years for Thodex Founders

A total of $24 million was lost due to the collapse of the crypto exchange.

The defendants are accused of establishing a criminal organization.

Thodex was part of the boom that attracted thousands of Turks who wished to protect their savings from rampant inflation and an unstable currency. Ozer stated in an unknown location in April 2021 that he would remit investors money and return to Turkey at a later date to face justice.

According to the indictment, total losses from the collapse of the exchange were TRY 356 million. That figure is far below the $2.6 billion estimated in a February report by Chainalysis. Based on the report, Thodex was responsible for about 90% of the global value lost to rug pulls in 2021.

It is alleged that the defendants established a criminal organization, engaged in fraud through informatics systems, and laundered proceeds from criminal activities.

Citing the Demiroren News Agency, Bloomberg pointed out that indictments include Faruk Fatih Ozer, the 28-year-old CEO who has been missing for the past year. Turkish police teams have flown to four countries, including Albania, in attempts to locate Ozer since footage of him was first released in April 2021. Despite the red notice posted on Interpols website, Ozer remains on the wanted list.

Crypto Adoption in Turkey

In terms of crypto adoption, Turkey is one of the worlds biggest markets. According to the data published by Coinmarketcap, Turkey accounts for almost 16% of global cryptocurrency users. Currently, the country stands at position number 4 for the highest number of crypto users around the world.

The Turkish Lira saw immense volatility in December 2021 after recent steps from Turkeys central bank. While rising inflation has caused a major worry for local residents, investors have started parking their savings into crypto assets like Bitcoin and Ethereum.