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Thodex

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Summary

Thodex was a Turkish cryptocurrency exchange founded in 2017 (originally as Koineks) by Faruk Fatih Özer that collapsed in April 2021 when the platform abruptly halted trading and its founder fled to Albania, leaving approximately 391,000 users unable to access funds estimated at $2 billion to $2.6 billion. Özer was arrested in Albania in August 2022, extradited to Turkey in April 2023, convicted in September 2023 and sentenced to 11,196 years in prison alongside his two siblings, and died in a Turkish high-security prison on November 1, 2025, in circumstances that prompted a formal investigation.

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Exchange Background and Operations

Thodex was established in 2017 under the name Koineks, making it the fourth cryptocurrency exchange to launch in Turkey. The platform was rebranded as Thodex in March 2020. Its founder, Faruk Fatih Özer, started the business at age 22. At the time of its collapse in April 2021, Thodex reported approximately 391,000 registered users. The exchange offered trading in a range of cryptocurrencies and positioned itself as a user-friendly domestic platform. Prior to collapse, Thodex had attracted a broad retail customer base in Turkey, a country with historically high cryptocurrency adoption rates driven in part by inflation concerns and currency instability.

Sources

April 2021 Collapse and Exit Fraud

On April 20–21, 2021, Thodex abruptly suspended all trading and withdrawals. The platform initially published a message stating the halt was due to a cyberattack and an unspecified investment transaction requiring temporary closure, characterizing the shutdown as a routine operational pause. Users were immediately locked out of their accounts and unable to withdraw any funds. Within days, it became apparent that founder Faruk Fatih Özer had departed Turkey for Albania on April 20, 2021. Turkish authorities launched a formal investigation on April 22, 2021, following a surge of user complaints. Financial crimes investigators subsequently froze all remaining Thodex assets. The funds involved are subject to varying estimates: Turkish prosecutors initially cited losses of approximately 356 million liras (roughly $13 million to $24 million at the time); Turkish media reports placed the figure at approximately $2 billion; and blockchain analytics firm Chainalysis independently estimated total lost cryptocurrency at approximately $2.6 billion. The case is widely categorized as an exit scam — a deliberate scheme in which an exchange operator halts operations and absconds with customer deposits.

Sources

Flight to Albania and Interpol Pursuit

Faruk Fatih Özer departed Turkey for Tirana, Albania on April 20, 2021, reportedly carrying cryptocurrency assets. On April 23, 2021, Interpol issued a Red Notice for his arrest at Turkey's request, charging him with fraud, forming and leading a criminal organization, and money laundering. Turkish authorities issued arrest warrants for Özer and 81 other individuals — including Thodex employees and associates — in September 2021. Özer remained at large for approximately 16 months. Turkish police arrested 62 people within Turkey in the immediate aftermath, including Özer's siblings Güven Özer and Serap Özer. On August 30, 2022, Albanian police located and arrested Özer in the coastal resort town of Himarë (also rendered as Vlorë region), in an operation code-named 'Brain.' Albanian authorities confirmed the arrest and Turkish interior ministry officials announced it publicly on the same day.

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Extradition Proceedings

Following Özer's arrest in Albania, Turkish authorities initiated formal extradition proceedings. On November 17, 2022, the Elbasan Court of First Instance in Albania granted the extradition request. Özer appealed the ruling on December 7, 2022. The Durrës Court of Appeals upheld the extradition verdict on December 30, 2022. Özer was transferred to Turkey and detained in Istanbul on April 20, 2023 — exactly two years after the Thodex collapse.

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Trial, Conviction, and Sentencing

On September 7, 2023, an Istanbul court convicted Faruk Fatih Özer on three principal charges: forming and leading a criminal organization, aggravated fraud, and money laundering. He faced 2,027 separate fraud counts, one for each individual investor formally identified as defrauded in the indictment. The court sentenced him to 11,196 years, ten months, and fifteen days in prison — one of the longest sentences ever handed down globally — along with a fine of 135 million Turkish liras (approximately US$5 million). Özer's siblings, Güven Özer and Serap Özer, received similarly structured lengthy sentences for their roles in supporting and facilitating the scheme. During proceedings, Özer reportedly showed no remorse and made statements suggesting he did not believe his actions constituted a crime, reportedly telling the court: 'I am smart enough to lead any institution on Earth.' The disparity between the prosecutor's estimated losses (around $13–24 million) and independent blockchain analytics estimates ($2–2.6 billion) was not resolved in the judgment.

Sources

Death in Prison

On November 1, 2025, Faruk Fatih Özer was found dead in his single-occupancy cell at Tekirdağ F Type High Security Closed Penitentiary in northwestern Turkey. Authorities reported that he was discovered hanging in the bathroom of his cell, with initial indications pointing to suicide. Özer was approximately 31 years old at the time of his death. Turkish prosecutors opened a formal investigation into the circumstances of his death, and the Ministry of Justice stated that prison and forensic officials were examining whether negligence or misconduct contributed to the outcome. Victims' advocates and legal observers publicly called for a thorough independent investigation, noting that Özer's death left significant unresolved questions about the ultimate disposition of the allegedly misappropriated funds, which remain largely unrecovered.

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Regulatory and Legal Aftermath in Turkey

The Thodex collapse served as a direct catalyst for sweeping changes in Turkish cryptocurrency regulation. In April 2021, the Central Bank of Turkey banned the use of cryptocurrency as a means of payment. A subsequent presidential order added crypto exchanges to the list of entities required to comply with Turkey's anti-money laundering (AML) and counter-terrorism financing (CTF) rules. In May 2021, Turkey expanded regulation to formally categorize Crypto Asset Service Providers (CASPs) as obligated entities under AML law. In October 2021, Turkey was placed on the Financial Action Task Force (FATF) grey list due to weaknesses in its financial crime compliance frameworks; it was removed from the grey list in June 2022. By 2024, Turkey had enacted its most comprehensive crypto legislation, introducing licensing requirements for exchanges and strict reporting obligations. The Thodex case also led to the prosecution of 21 defendants in addition to Özer, facing a combined potential sentence of up to 40,564 years.

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Victim Impact and Fund Recovery

Approximately 391,000 Thodex users were left unable to access their accounts following the April 2021 shutdown. The total funds subject to loss estimates range widely: official Turkish prosecution figures cited 356 million liras (approximately $13–24 million), while Chainalysis estimated approximately $2.6 billion in cryptocurrency was misappropriated. At sentencing, a fine of 135 million Turkish liras (approximately $5 million) was imposed on Özer, a fraction of even the most conservative loss estimates. There is no public record of a formal government victim compensation program or fund established for Thodex victims. Prosecutors reportedly received documentation suggesting Özer had made limited restitution payments to some victims prior to sentencing. Özer's death in November 2025 has further complicated any prospective recovery efforts, as the location or disposition of the bulk of allegedly misappropriated cryptocurrency assets has not been publicly established.

Sources

Timeline

2017-01-01

Faruk Fatih Özer founds Koineks, the fourth cryptocurrency exchange in Turkey.

Thodex — Wikipedia

2020-03-01

Koineks is rebranded as Thodex.

Thodex — Wikipedia

2021-04-20

Thodex halts all trading and withdrawals; Faruk Fatih Özer departs Turkey for Tirana, Albania.

Daily Sabah: $2B crypto scam — Turkish exchange Thodex goes silent

2021-04-22

Turkish public prosecutors open a formal investigation into Thodex following mass user complaints.

Thodex — Wikipedia

2021-04-23

Interpol issues a Red Notice for Faruk Fatih Özer at Turkey's request.

Faruk Fatih Özer — Wikipedia

2021-04-01

Turkish financial crimes investigators freeze all remaining Thodex assets. 62 people, including Özer's siblings, are detained in Turkey.

Thodex — Wikipedia

2021-04-30

Central Bank of Turkey bans use of cryptocurrency as a payment method, citing risks highlighted by the Thodex collapse.

Fortune: Trouble in Turkey as crypto falls foul of local laws

2021-09-01

Turkish authorities issue arrest warrants for Özer and 81 other individuals connected to Thodex.

Thodex — Wikipedia

2021-10-01

Turkey is placed on FATF's grey list for weaknesses in AML/CTF compliance.

ComplyCube: What Do Turkey Crypto Regulations Look Like?

2022-06-01

Turkey is removed from the FATF grey list after implementing improved AML/CTF frameworks.

ComplyCube: What Do Turkey Crypto Regulations Look Like?

2022-08-30

Albanian police arrest Özer in the coastal town of Himarë in an operation code-named 'Brain.'

The National News: Police arrest fugitive Turkish crypto fraud suspect in Albania

2022-11-17

The Elbasan Court of First Instance in Albania grants Turkey's extradition request for Özer.

CoinDesk: Founder of Crypto Exchange Thodex to Be Extradited to Turkey from Albania

2022-12-30

The Durrës Court of Appeals upholds the extradition verdict after Özer's appeal.

CoinDesk: Founder of Crypto Exchange Thodex to Be Extradited to Turkey from Albania

2023-04-20

Özer is extradited to Turkey and detained in Istanbul, exactly two years after the Thodex shutdown.

CoinDesk: Collapsed Turkish Crypto Exchange Thodex's CEO Faruk Özer Extradited, Arrested in Istanbul

2023-09-07

Istanbul court convicts Özer on charges of aggravated fraud, leading a criminal organization, and money laundering. He is sentenced to 11,196 years, ten months, and fifteen days in prison and fined 135 million Turkish liras. His siblings receive similar sentences.

CoinDesk: 11,196 Years in Prison for Faruk Özer

2025-11-01

Özer is found dead in his cell at Tekirdağ F Type High Security Closed Penitentiary. Authorities report the apparent cause as hanging. Prosecutors open an investigation into the circumstances of his death.

Turkish Minute: CEO of collapsed crypto exchange Thodex found dead in Turkish prison

model: claude-code-investigator

generated: 5/8/2026, 2:31:32 AM

last updated: 5/8/2026, 2:42:01 AM

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