Longest prison sentence in encryption history: Thodex founder dies in Turkish prison, ending a 12,000-year sentence in a $12.5 million fraud case.

Faruk Fatih Ozer, the founder and former CEO of the now-defunct crypto assets exchange Thodex in Turkey, was found dead in a single cell at the F-type high-security prison in Tekirdağ, Turkey. Ozer had previously been sentenced to a historic 11,196 years in prison on multiple charges, and his death marks the end of one of Turkey's largest cryptocurrency scandals involving losses of investor funds exceeding 356 million Turkish Lira (approximately 12.5 million USD). Authorities have launched a formal investigation into his death, with preliminary reports pointing to suicide.

Historic Judgment Concludes: Ozer's Fraudulent Career Ends with 11,196 Years in Prison

The death of Ozer marked the conclusion of a major fraud case that shook the Turkish crypto assets sector, but the impact of the case on Turkish regulation is still ongoing.

• Longest prison sentence in history: Ozer was previously sentenced to an extraordinarily long term of 11,196 years, 10 months, and 15 days for multiple charges, including establishing and leading a criminal organization, serious fraud, and money laundering. His siblings were also sentenced for similar charges.
• Fraud case details: Thodex was established in 2017 and was one of Turkey's leading exchanges, but suddenly suspended operations in April 2021. Prosecutors accuse Ozer of defrauding over 400,000 investors.
• Financial Loss: The Financial Crimes Investigation Board (MASAK) reported that the total loss from the case amounts to 356 million Turkish Lira (approximately $12.5 million). It is alleged that 253.7 million Turkish Lira (approximately $8.9 million) in Crypto Assets was transferred to wallets controlled by Ozer and his accomplices, including accounts in Malta.

Scandal Impact: Driving Turkey's Cryptocurrency Regulation Tightening

The collapse of Thodex has sparked widespread outrage among the public, becoming a turning point for Turkey's Crypto Assets regulation and prompting authorities to call for tighter regulation of the industry.

• Case Review: According to the indictment, Thodex attracted users through promotional activities and then suddenly froze withdrawals. Ozer fled to Albania after the exchange closed and was arrested in August 2022 following an international manhunt, and he was extradited back to Turkey in April 2023.
• Legal Proceedings: A total of 21 defendants were tried in this case, of which 7 were detained and 16 were acquitted due to insufficient evidence.
• Regulatory tightening: Ozer's death marked the end of this legendary event that shook the landscape of crypto assets in Turkey, leaving thousands of investors with no recourse.

Current State of the Turkish Crypto Assets Market: A Financial Haven and Trading Center Amid High Inflation

Despite the Thodex scandal, Turkey remains the largest Crypto Assets market in the MENA region.

• MENA Market Leader: According to data from Chainalysis, Turkey has solidified its position as the largest Crypto Assets market in the Middle East and North Africa, with an annual trading volume of nearly $200 billion, approximately four times that of the second-ranked UAE.
• High Inflation Driven: Chainalysis's 2025 Cryptocurrency Adoption Report emphasizes that in the face of high inflation and the depreciation of the lira, cryptocurrency has become a financial haven and speculative channel for the Turkish people.
• Market Trend: Since 2021, Turkey's total inflow of funds has exceeded $878 billion. Nevertheless, retail participation is cooling down, and institutional investors are beginning to dominate.

Conclusion

The abnormal death of Thodex founder Ozer in prison leaves a tragic end to Turkey's largest crypto fraud case. The consequences of this incident have permanently changed Turkey's crypto regulatory environment, prompting authorities to adopt stricter oversight measures. Despite facing challenges from fraud and regulatory tightening, the strong demand for crypto assets in the Turkish market still reflects the core value of crypto assets as a means of value preservation and trading tools in the context of macroeconomic instability.