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The Thodex exchange case in Turkey is the largest cryptocurrency fraud case in Turkish history. Let's learn how to avoid pitfalls together.
Background: The exchange was founded in 2017 by Faruk Fatih Ozer, a post-90s entrepreneur, who later obtained the US FinCen MSB license. At its peak, the platform's daily trading volume reached $1.2 billion. In March 2021, it launched a campaign offering free Dogecoin to new users to attract a large number of new users, preparing for subsequent harvesting.
Sudden Standstill: In April 2021, the platform first claimed that trading was abnormal due to a cyber attack, and then completely halted trading on April 20, shutting down user account access the next day. The official narrative falsely claimed it was just a 4-5 day operational pause to assess cooperation with large financial institutions, buying time to appease users.
Running Away with Funds: While users waited for operations to resume, Ozer had already fled to Albania with $2 billion (approximately 138 billion RMB) worth of cryptocurrency under his account, wiping all content from his social media platforms. At that time, the assets of over 390,000 users were frozen and could not be withdrawn.
Judicial Accountability: After the incident broke out, Turkish police acted swiftly, arresting over 80 people involved, including Ozer's siblings, while freezing all assets of the platform and issuing a red notice for Ozer through Interpol. In August 2022, Ozer was arrested in Albania and extradited back to Turkey.
Final Judgment: The Istanbul court found Ozer guilty of serious fraud, leading a criminal organization, and money laundering, sentencing him to 11196 years in prison in 2023. His siblings and other executives also received corresponding heavy sentences, and this judgment became one of the most deterrent heavy penalty cases in the cryptocurrency space.
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