Thodex CEO imprisoned for tax evasion.

Thodex CEO imprisoned for tax evasion.

The Rise and Fall of Thodex: Insights into the Blockchain Industry

The blockchain industry has witnessed tremendous growth in recent years, revolutionizing various sectors and attracting millions of investors. However, with its rapid development, the industry has also experienced its fair share of controversies and challenges. One such case is the story of Farouk Fatih Özer, the former CEO of Thodex, a prominent crypto exchange in Turkey.

Thodex, once a thriving crypto exchange in Turkey, shocked the market when it abruptly closed its operations. This closure not only left approximately 391,000 customers in a state of uncertainty but also led to the discovery of an alleged $2 billion worth of cryptocurrencies belonging to investors. Farouk Fatih Özer, the CEO of Thodex, fled to Albania in an attempt to escape the repercussions.

However, Özer’s escape was short-lived as an Interpol Red Notice was issued against him, resulting in his deportation back to Turkey. He was held accountable for his actions and faced charges of alleged fraud, money laundering, and operating a criminal network through Thodex. The legal battle unfolded with Özer vehemently denying any wrongdoing and claiming that he was not the official representative of Thodex at the time of the alleged crimes.

Apart from the charges mentioned above, Özer is also accused of defrauding Thodex investors. Despite the allegations, he continues to maintain his innocence and firmly asserts that the defendants have framed him. During his first court appearance, Özer denied all charges and proclaimed that his company was hacked, thereby shifting blame to external forces.

The legal proceedings against Özer gained momentum when he failed to comply with a notification requesting the submission of documents related to his business. Despite claiming that a trustee had been assigned to oversee the company in his absence, Özer was unable to produce the requested documents to the Tax Inspection Board. Consequently, he was convicted.

Initially, the prosecutor sought a five-year prison sentence for Özer on charges of “smuggling” under the Tax Procedure Law. However, the court eventually reduced the sentence to seven months and 15 days. This reduction can be attributed to various factors, including Özer’s social relations and overall behavior and conduct throughout the trial.

Implications for the Blockchain Industry

The Thodex case sheds light on the importance of transparency and accountability within the blockchain industry. It serves as a cautionary tale for investors, highlighting the risks associated with placing trust in centralized platforms. The incident also underscores the need for regulatory frameworks to protect investors and prevent fraudulent activities.

While the Thodex case has undoubtedly tarnished the reputation of the crypto industry in Turkey, it is crucial to remember that the blockchain industry as a whole has immense potential. Blockchain technology has the power to transform various sectors, including finance, supply chain management, and healthcare, by ensuring transparency, efficiency, and security.


The story of Farouk Fatih Özer and Thodex serves as a reminder of the challenges and controversies that can arise in the blockchain industry. It emphasizes the importance of adhering to legal and ethical standards to maintain trust and credibility. As the industry continues to evolve, it is essential for individuals and organizations to prioritize integrity and accountability, paving the way for a robust and trustworthy blockchain ecosystem.

The total market cap stood at $1.15 trillion on the one-day chart Figure 1: The total market cap stood at $1.15 trillion on the one-day chart | Source: TradingView