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Faruk Fetih Özer – the founder of the previously prominent Turkish cryptocurrency exchange Thodex – will serve seven months and 15 days in prison for not providing essential documents to the Tax Inspection Board.
He is also facing fraud allegations regarding the misappropriation of over $2 billion in client funds when the platform collapsed in 2021. Although Özer allegedly fled Turkey shortly after the incident, he was apprehended in Albania last summer. If convicted on all charges, he could face a significantly harsher sentence.
Özer Continues to Assert His Innocence
According to Hürriyet Daily News, Özer’s case was presented at the Anatolian 17th Criminal Court of First Instance, where the judges initially sentenced him to one and a half years in prison. They later reduced the sentence based on his conduct, social connections, and the potential repercussions for his future.
Furthermore, the court delayed the announcement of the verdict against Özer and postponed the execution of the order.
The founder of Thodex reiterated his innocence, stating that he was not in charge of the company at the time of the alleged offense. He mentioned that a previously appointed trustee had obstructed him from providing the requested documents.
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The legal proceedings against Özer commenced in October 2021 when Turkish authorities requested that he submit specific documents related to his operations at Thodex. The exchange’s founder did not comply within the designated legal timeframe.
His Additional Legal Challenges
In addition to the previously mentioned offense, Özer is confronted with several other charges that could result in a life sentence.
Disappointed investors and prosecutors have asserted that he played a significant role in Thodex’s downfall in the spring of 2021 when the platform halted trading services. The 400,000 customers were unable to access their funds, while Özer allegedly departed the country with over $2 billion of users’ assets.
The fugitive was captured in Albania in August 2022 after reportedly evading capture for more than a year. Albanian and Turkish officials coordinated his deportation, and he returned to his home country in April. If convicted, Özer faces an extraordinary potential sentence of 40,000 years in prison.
The 29-year-old denied all allegations last month, asserting that he was “framed.” He also contends that some of his former employees at Thodex, including two of his siblings, were “unlawfully” incarcerated.
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