The Thodex exchange is one of the most significant cryptocurrency fraud cases in Turkey's history, which not only caused the assets of nearly 400,000 users to 'evaporate,' but also prompted changes in local cryptocurrency regulatory policies.
Faruk Fatih Ozer, born in 1994, founded the Thodex exchange in 2017. It was also the first global cryptocurrency exchange in Turkey to obtain the FinCen MSB license from the United States, peaking at around 700,000 customers, with a 24-hour trading volume reaching as high as $585 million. In April 2021, the platform first cited a cyber attack as the reason for trading malfunctions, and then on the 21st, it completely shut down trading and withdrawal functions, announcing that it would only be suspended for 4 - 5 days, which was actually a delay tactic before fleeing.
While shutting down the platform, Ozer absconded with approximately $2 billion in cryptocurrency assets to Albania. The Turkish police immediately launched a manhunt, issuing arrest warrants for 78 platform employees, detaining 62 people, and collaborating with Interpol to issue a red notice. On August 30, 2022, Ozer was captured in Albania and extradited back to Turkey in April 2023.
In September 2023, the court sentenced Ozer to 11196 years in prison for forming a criminal organization, severe fraud, and other charges, while his siblings and company executives were also sentenced to long-term imprisonment. On November 1, 2025, Ozer was found dead in a high-security prison cell in Turkey, with preliminary investigations pointing to suicide, and relevant investigations are still ongoing.
The scam affected nearly 391,000 customers, with Chainalysis subsequently estimating investor losses could reach as high as $2.6 billion. This incident also directly prompted Turkey to tighten cryptocurrency regulations, prohibiting the use of cryptocurrency for payments, revising anti-money laundering laws, and subsequently introducing amendments to capital market laws, adding new cryptocurrency licensing, reporting, and consumer protection provisions.
