ISTANBUL, Turkey — Faruk Ozer, the 29-year-old disgraced founder of Thodex crypto exchange, and his two brothers, Serap and Guven, have been sentenced to 11,196 years in prison each, according to Turkey’s Anadolu state news agency on Friday, September 8, 2023.
Prosecutors had originally sought an astounding 40,562 years for Ozer on multiple charges, including money laundering, fraud, and establishing a criminal organization.
Ozer defended himself in court saying, “If I were to establish a criminal organization, I would not have acted so amateurishly,” Anadolu reported.
The sentences were handed down late Thursday after a brief but high-profile trial that captured the Turkish public’s attention.
This sensational case unfolded against the backdrop of a booming yet volatile cryptocurrency market in Turkey, which has largely lost its steam due to heavier government regulation.
Ozer, who was reported to have fled Turkey in April 2021 with an initially estimated $2 billion in investor assets—a figure that has since been disputed—was arrested last year in Albania.
Prosecutors noted that he had moved about 250 million liras (roughly $30 million at the time) in user assets to three secret accounts, with much of the funds ultimately deposited in a Maltese bank.
According to the indictment, the actions of the Ozer brothers caused a total damage of 356 million liras to their clients.
Turkey has been known for issuing gargantuan prison sentences, especially after abolishing the death penalty in 2004 to align its legal system with European Union norms.
Such lengthy sentences are partly symbolic, as Turkish law stipulates a maximum detention period of 40 years.
However, the figures serve as a stern warning to would-be criminals in a country grappling with economic challenges and a depreciating lira.
“In a country where people have turned to cryptocurrencies as a hedge against economic instability, this case and the resulting sentences send a strong message about the government’s unwillingness to tolerate fraudulent schemes,” said Elif Dogan, a legal analyst specializing in financial crimes.
Ozer’s celebrity status was amplified when he was photographed meeting with ultranationalist pro-government figures, drawing widespread media coverage and public scrutiny.
The collapse of Thodex and the ensuing legal battle coincided with a time when Turks were increasingly exploring cryptocurrencies to protect against the deep slide in the lira’s value, which has been deteriorating for more than two years.
“As much as this case is a spectacle, it’s also a wake-up call. The sentences may look surreal, but the implications are very real for the crypto industry and regulatory environment in Turkey,” Dogan added.
