A once-prominent Turkish cryptocurrency exchange, Thodex, abruptly went offline in April 2021. It triggered shockwaves across the global crypto community.
Over 400,000 Thodex exchange users found themselves locked out of their accounts, unable to withdraw funds. Unfortunately, losses estimated at a staggering $2 billion followed—marking one of the largest crypto frauds in history.
At the center of this financial catastrophe was Faruk Fatih Özer, the then-27-year-old founder and CEO of Thodex, who fled the country just as the platform went dark.
The case not only exposed glaring regulatory gaps in the crypto space but also highlighted the risks faced by investors in rapidly growing but loosely governed digital markets.
In this TRU Insight, we’ll dissect the timeline of events, the mechanics of the scam, the international manhunt that followed, and the broader implications for cryptocurrency regulation and investor protection.
Thodex Exchange Scam at a Glance
What Happened
In April 2021, Thodex suddenly halted trading and withdrawals, preventing users from accessing their funds. Faruk Fatih Özer, the founder, fled Turkey with an estimated $2 billion in cryptocurrency.
Turkish authorities launched a large-scale investigation, leading to multiple arrests.
Who Are Involved
Faruk Fatih Özer is the founder of Thodex, who fled the country and was later arrested in Albania. Additionally, Turkish police authorities detained 62 people, including Thodex employees and Faruk Özer’s siblings, Güven and Serap.
His orchestrated scam affected around 400,000 users from around the globe.
What Do We Know
Özer was convicted of fraud, money laundering, and operating a criminal organization. Following these charges, Özer was sentenced to 11,196 years in prison in September 2023.
The scam highlighted the risks associated with unregulated cryptocurrency exchanges and the importance of due diligence.
Overview of Thodex Exchange
Thodex (legal name: Koineks Teknoloji A.S.) was a centralized crypto exchange (CEX) platform founded in Turkey in 2017. It used to have a Money Service Business (MSB) license from the Financial Crimes Enforcement Network.
Faruk Fatih Özer founded the crypto exchange and was initially named Koineks. This exchange was the fourth crypto exchange in Turkey, marking its relevance to the country’s cryptocurrency market.
The exchange gained popularity quickly upon hitting around 391,000 users by April 2022 as Turks began using cryptocurrencies to hedge the depreciating Iira.
Related: 10 Weakest Currencies in the World + Prices in 2025
Everything Changed in April 2021
Thodex’s story took a dramatic turn in April 2021 when the platform suddenly halted trading, and users could not access their accounts. The founder, Faruk Fatih Özer, fled Turkey with an estimated $2 billion in cryptocurrency.
This led to a massive investigation and the eventual arrest of 62 individuals connected to the exchange, although Özer himself remained at large for some time.
Sudden Halt of Operations
One random day in April 2024, Thodex users were suddenly sent into shockwaves when the entire exchange operation was halted. Worse, more than 400,00 users were left unable to access their funds.
To ignite a bigger flame, the admine deactivated all Thodex online entitie, including their social media accounts, email accounts, and customer service channels.
Thus, all its users could not pull out their funds from the platform.
According to Özer, he will participate with the Turkish authorities to return the money to Thodex users.
Founder Fleeing the Country
Despite promising cooperation, Thodex’s founder, Faruk Özer, flew from Turkey in 2021 and remained at large for some time.
This escape followed his change of story regarding the matter. According to him, he and the exchange were victims of a cyberattack responsible for an estimated $2 billion loss.
Start of Criminal Investigation
Özer’s disappearance sparked a criminal investigation against him, his accomplices, and Thodex’s operation. An international search was also initiated to locate Özer. The Turkish authorities issued a red notice to Interpol (International Police), requesting all law enforcement worldwide to arrest Özer provisionally.
In the same year, he was found and arrested in Albania, where he was held in custody as the trial took place.
Turkish authorities charged Thodex’s CEO with organized crime, fraud, and money laundering.
However, Özert disputed the claim, saying that he’d “not have acted so amateurishly” if he planned on executing criminal activities.
Fraud and Money Laundering Charges
In a significant legal development, Faruk Fatih Özer was sentenced to 11,196 years in prison in September 2023 for fraud, money laundering, and operating a criminal organization.
This sentence is one of the longest in history and reflects the severity of the crimes committed.
What Happened to Faruk Fatih Özer?
In 2024, Faruk Özer was arrested in Turkey—starting his 11,196-year prison sentence.
Bloomberg defined Özer as a “high-school drop-out” who founded the exchange in 2017—the perfect year to exploit the booming hype towards the new financial asset. Additionally, targetting Turks was strategic as the Turkish Lira was in constant depreciation, and the Turks sought ways to hedge the economic crisis.
