A Hanging in the Crypt: Thodex Founder's Death Casts Shadow Over Turkey's Crypto Future

Faruk Fatih Ozer, the founder and former CEO of the collapsed Turkish cryptocurrency exchange Thodex, was found dead in his prison cell on Nov. 1, 2025, while serving an 11,196-year sentence for orchestrating what is considered one of the largest crypto fraud schemes in history, according to a Coinpedia report. Authorities are investigating the possibility of suicide, with initial findings pointing to the 52-year-old Ozer hanging in the bathroom of his single-person cell at the Tekirdag F-Type High Security Closed Prison, according to a Bitcoinist report. The death has reignited scrutiny over the 2021 collapse of Thodex, which left an estimated $2.6 billion in losses for investors, according to a CryptoTimes article.

Ozer's case, which culminated in a 2023 conviction for aggravated fraud, money laundering, and leading a criminal organization, marked a pivotal moment in Turkey's approach to crypto regulation, according to a Yahoo Finance report. Following Thodex's abrupt shutdown in April 2021, Ozer fled to Albania, triggering a global manhunt before his extradition to Turkey in 2023. During his trial, prosecutors alleged that Ozer and his siblings diverted $2.6 billion in investor funds through wallets controlled by the family, including accounts in Malta, the Yahoo report said. The collapse of Thodex, once Turkey's leading crypto exchange, led to widespread public outrage and pushed regulators to tighten oversight of the sector, the CryptoTimes article noted.

The prison where Ozer died has faced past criticism from human rights groups for its use of solitary confinement and small-group isolation, a Bitcoinist report previously noted. Justice Minister Yılmaz Tunç confirmed an investigation into the circumstances of his death, stating that "initial findings indicate it was a suicide," according to a TradingView report. Ozer, who previously expressed suicidal thoughts in a statement following Thodex's collapse, had claimed he fled Turkey to "stay alive and fight, work and repay my debts," the TradingView report added.

The case has had lasting implications for Turkey's crypto landscape. The government has since implemented stricter licensing requirements for exchanges and increased scrutiny of virtual asset activities, the Yahoo report added. Meanwhile, the incident underscores the risks inherent in the unregulated crypto market, particularly for platforms operating in jurisdictions with lax oversight.