Faruk Fatih Ozer, the founder and former chief executive of the defunct Turkish cryptocurrency exchange Thodex, was found dead in his prison cell in the western Turkish city of Tekirdag on Saturday, according to a Bloomberg report.
Ozer’s death has prompted an immediate investigation, with officials reportedly focusing on the possibility that the former CEO died by suicide, TRT confirmed to Bloomberg.
The news reignites international scrutiny on the 2021 collapse of Thodex, which was one of the largest “rug pulls” in crypto history and left hundreds of thousands of investors with massive losses.
Background of Conviction and Sentence
Ozer was serving an 11,196-year prison sentence handed down by a Turkish court two years ago. This sentence followed his conviction on charges including aggravated fraud, money laundering, and establishing a criminal organization. The exceptionally long sentence was calculated by accumulating penalties based on the number of victims affected by the exchange's collapse.
Financial Impact of the Thodex Collapse
The details of the Thodex collapse highlight the immense financial scale of the fraud:
- •Estimated Losses: While the initial prosecutor’s indictment placed investor losses at approximately $24 million, Turkish media outlets reported figures reaching as high as $2 billion.
- •Chainalysis Estimate: Blockchain data and analytics firm Chainalysis estimated the total losses incurred by Thodex investors were approximately $2.6 billion.
Ozer's Escape and Extradition
Ozer, a high-school dropout, founded Thodex in 2017. Following the exchange’s implosion in April 2021, he fled Turkey for Albania, triggering an international manhunt. An Albanian court ordered his extradition back to Turkey in 2022, where he was subsequently tried and convicted.