The Istanbul Regional Court of Justice has overturned part of the conviction against Faruk Fatih Özer, the founder of the now-defunct cryptocurrency exchange Thodex, according to local media reports.
The court dismissed charges related to establishing a criminal organization, but it upheld his convictions for aggravated fraud and money laundering. Despite the ruling, Özer and his co-defendants remain in prison as their legal team pushes for a retrial.
Thodex and One of the Biggest Crypto Scandals
Thodex was once one of Turkey’s largest cryptocurrency exchanges, serving over 400,000 users and handling an estimated $585 million in daily trading volume. However, in April 2021, the platform suddenly halted withdrawals, locking users out of their funds. Shortly after, authorities discovered that Özer had fled Turkey, leading to a major investigation.
Turkish officials later determined that approximately $2 billion in crypto had been stolen in what became one of the largest rug pulls in cryptocurrency history.
While Özer’s brothers, Güven and Serap, were arrested early on, he remained at large until 2022, when he was captured in Albania and later extradited to Turkey in 2023.
Court Overturns Organized Crime Charges but Upholds Fraud Convictions
In a recent ruling, the Istanbul Regional Court of Justice overturned guilty verdicts for 16 defendants, but only four were fully acquitted and released.
The court dismissed the charges of forming a criminal organization for Özer and his brothers, stating that each criminal charge must be evaluated separately.
However, they remain in prison due to their convictions for fraud and money laundering.
Local reports confirmed that the court sent the case back to the lower court for further review. Meanwhile, Özer’s legal team argues that the length of the sentencing was unfair and is demanding a retrial.
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Özer’s Legal Defense Pushes for Leniency
Özer’s attorney, Sevgi Eraslan, emphasized the importance of fair judicial processes, arguing that his sentencing was disproportionate and that public perception influenced the verdict.
“The presumption of innocence is one of the cornerstones of a democratic state governed by the rule of law. No person can be declared guilty before the judicial process reaches a final decision,” Eraslan stated.
His defence also pointed out that initial reports exaggerated the total amount stolen, suggesting that instead of the widely reported $2 billion, the indictment now claims the stolen sum was $7 million.
What’s Next for Özer and the Thodex Case?
Despite the partial overturning of charges, Özer and his co-defendants remain in prison, serving their 11,196-year sentences—a term commonly given in Turkey for major financial crimes. His legal team continues to push for an appeal, arguing that the case has been misrepresented in the media.
As their legal team continues to fight for a retrial, the case remains one of Turkey’s most significant crypto scandals, serving as a cautionary tale for investors and the crypto industry at large.
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