Founder of Defunct Turkish Crypto Exchange Thodex Found Dead in Prison

Faruk Fatih Ozer, founder of Thodex, found dead in Turkish prison.

Faruk Fatih Ozer, the former CEO and founder of the bankrupt Turkish cryptocurrency exchange Thodex, has been found dead in a solitary cell in a high-security prison in Tekirdag, according to local media reports.

Reports indicate that the entrepreneur was discovered hanged in the bathroom.

Authorities have initially considered the incident a suicide. The body has been sent to the Institute of Forensic Medicine to determine the cause of death. The prosecutor’s office has launched an investigation.

In April 2021, Thodex unexpectedly halted trading. Users were also alarmed by the closure of the exchange’s social media accounts by its head.

The platform’s team initially cited planned technical work. This was followed by a statement about the arrival of a “major partner,” which would keep the site unavailable during the transfer process, expected to take 4-5 days.

Thodex denied suspicions of an exit scam, and Ozer assured that he had no plans to disappear, dismissing reports of missing user funds as false. However, journalists, citing police sources, reported that the entrepreneur left Turkey a day before trading was halted.

As part of the ongoing investigation, authorities issued arrest warrants for 78 individuals connected to the exchange. Police swiftly detained more than 60 suspects.

Turkey issued a “red notice” for the founder of Thodex through Interpol. Ozer was arrested in August 2022 in Albania at the request of Turkish law enforcement.

In April 2023, the entrepreneur was extradited to his home country. In September, a court sentenced Ozer, his sister, and brother to 11,196 years, 10 months, and 15 days in prison each. They were also fined 135 million lira (about $5 million). The charges included forming a criminal organization, fraud, and money laundering.

The court acquitted 16 of the 21 defendants in the case.

In a statement, the prosecutor’s office estimated investor losses from the Thodex collapse at $24 million. Turkish media cited a figure of $2 billion, while the analytics firm Chainalysis calculated damages at $2.6 billion.

Scam as a Pretext for Tighter Regulations

In May 2024, the country’s authorities announced stricter regulations for digital assets. A key aspect of the decision was investor protection in the wake of the Thodex collapse.

Starting in February 2025, users conducting crypto transactions exceeding 15,000 TRY (~$357) are required to provide service providers with identification data.

Subsequently, the Ministry of Finance imposed limits on stablecoin transfers ($3,000 per day and $50,000 per month) and delays on fund withdrawals (48-72 hours). The agency explained the measures as a fight against money laundering.

Back in July, Turkish authorities blocked access to the DEX PancakeSwap and the CryptoRadar platform, citing “providing services with crypto assets without permission.”