Faruk Özer Dies In Prison, Questions Rise Over Crypto Fraud Case

Faruk Fatih Özer, the former CEO of collapsed Turkish crypto exchange Thodex, was found dead in his prison cell in Tekirdağ. Authorities are investigating the incident, with initial reports suggesting suicide as the likely cause. The death marks a dramatic end to a case that had become symbolic of the risks in the largely unregulated crypto sector.

Thodex, founded in 2017, abruptly halted withdrawals in 2021 before Özer fled Turkey. After his extradition from Albania in 2022, he received an unprecedented 11,196-year prison sentence in 2023 for fraud. The scale of losses remains contested, with estimates ranging from $24 million to $2.6 billion according to blockchain analytics firm Chainalysis.

The incident reignites debates about investor protection and oversight in cryptocurrency markets. While no specific coins or exchanges were implicated in the ongoing investigation, the case underscores systemic vulnerabilities that continue to challenge the industry's maturation.