Thodex Founder's Prison Death Fuels Global Push for Crypto Oversight

Faruk Fatih Ozer, the founder and former CEO of the collapsed Turkish cryptocurrency exchange Thodex, was found dead in his prison cell on November 1, 2025, while serving an 11,196-year sentence for fraud and leading a criminal organization, according to a Crypto.news report. State-run Turkish media reported that officials are investigating whether Ozer, 31, committed suicide. His death has reignited scrutiny over the 2021 collapse of Thodex, which left investors with estimated losses of $2.6 billion from blockchain analytics firm Chainalysis, as reported by Coinpedia.

Thodex, founded in 2017 as one of Turkey's largest crypto exchanges, abruptly shut down in April 2021 after a promotional campaign offering free Dogecoin to new users. Users were locked out of their accounts following the shutdown, which the exchange attributed to a cyberattack. Prosecutors later alleged that Ozer orchestrated a $253.71 million embezzlement scheme, siphoning funds into wallets controlled by himself and associates, Bitget reported. Turkish media and Chainalysis reported significantly higher loss estimates than the initial $24 million figure cited in the prosecutor's indictment.

Ozer fled to Albania after the collapse and was arrested in August 2022 under an Interpol warrant. He was extradited to Turkey in April 2023 and sentenced in September 2023 to 11,196 years, 10 months, and 15 days in prison, along with a fine of 135 million Turkish liras. The sentence, calculated by aggregating penalties for multiple fraud and money laundering charges, marked one of Turkey's longest prison terms, CryptoBriefing reported.

His siblings and top executives also received lengthy sentences, while 16 other defendants were acquitted for lack of evidence. The case has become a flashpoint for calls to strengthen crypto regulations, with critics highlighting the risks of unregulated exchanges. Ozer's death has intensified demands for oversight in Turkey and globally, as regulators grapple with the volatility and fraud risks inherent in the digital asset sector.

An investigation into Ozer's death is ongoing, with authorities focusing on the possibility of suicide. The incident has also drawn attention to prison conditions and the psychological well-being of inmates serving extreme sentences, raising broader questions about the justice system's handling of high-profile financial crimes.