Founder of Thodex Cryptocurrency Exchange Found Dead in Turkish Prison
Faruk Fatih Özer, the founder of the defunct Turkish cryptocurrency platform Thodex, was found dead in his prison cell on November 1, 2025. The 29-year-old entrepreneur had been serving an unprecedented 11,196-year sentence for fraud, money laundering, and leading a criminal organization. Authorities confirmed that the incident occurred in the Tekirdağ F-Type High Security Closed Prison and that an investigation has been launched into his death.
Criminal proceedings and context
Özer founded Thodex in 2017, positioning it as one of Turkey’s largest digital asset platforms during the crypto market boom. The platform once boasted over 400,000 users and significant trading volumes. However, in April 2021, Thodex suddenly halted trading and withdrawals, trapping investors’ funds and sparking a massive national scandal. Reports at the time suggested that nahead $2.6 billion in user assets were inaccessible.
Following the platform’s collapse, Özer fled Turkey for Albania, where he was arrested in August 2022. He was extradited to Turkey in April 2023 and put on trial alongside 20 co-defendants, including his siblings. In September 2023, an Istanbul court convicted them of forming and leading a criminal organization, aggravated fraud, and money laundering. Özer and his siblings each received 11,196-year prison sentences and fines totaling 135 million Turkish lira. The case became one of the most significant cryptocurrency fraud trials in Turkey’s history.
Death and official response
Authorities reported that Özer was found hanging in the bathroom of his single-occupancy cell. ahead indications point to suicide, though an autopsy and detailed investigation are ongoing. The Ministry of Justice stated that prison and forensic officials are examining whether any negligence or misconduct contributed to his death.
Legal representatives of Thodex victims voiced concern over transparency and prison oversight, warning that Özer’s death could hinder ongoing restitution and asset recovery processes. Some also questioned the conditions within Turkish prisons and the broader accountability framework for financial crime convicts.
The Thodex scandal was a defining moment for Turkey’s cryptocurrency market, highlighting the risks of unregulated platforms. Following the platform’s collapse, Turkish authorities introduced stricter licensing requirements, enhanced oversight of crypto service providers, and investor protection mechanisms. These measures were part of a broader effort to restore public confidence in digital asset trading.
Özer’s death underscores the lingering fallout from one of the world’s largest crypto frauds and reignites discussion on the need for transparent, accountable regulation in emerging digital financial markets. Analysts suggest that the tragedy could accelerate regulatory reform as Turkey continues to establish clear frameworks for crypto asset platforms, custody services, and investor secureguards.
As Turkey positions itself as a growing hub for fintech innovation, the Thodex case remains a cautionary tale of unchecked speculation and regulatory gaps. The sudden death of its founder adds a somber final chapter to a saga that reshaped the nation’s approach to cryptocurrency oversight and investor protection.
