Thodex CEO's Death in Prison Triggers Immediate Demands for Cryptocurrency Oversight Following $2.6 Billion Loss

Faruk Fatih Özer, who previously led the now-defunct Turkish crypto exchange Thodex, was discovered deceased in his cell at a Tekirdağ prison on November 1, 2025, as reported by

. Officials are currently examining whether Özer, who was serving an 11,196-year sentence for masterminding one of Turkey’s most significant financial scams, died by suicide. This event has renewed attention on the Thodex collapse, which in 2021 left thousands of investors facing losses that blockchain analytics company Chainalysis estimated at $2.6 billion.

Özer, who launched Thodex in 2017 as a self-made businessman, escaped to Albania after the platform suddenly ceased operations in April 2021, locking users out of their accounts. He was extradited back to Turkey in August 2022 and subsequently found guilty of charges such as forming a criminal group, aggravated fraud, and money laundering. In September 2023, the 9th High Criminal Court of Anadolu handed down the extraordinary 11,196-year sentence, calculated by combining penalties for numerous counts of fraud and laundering, according to a

. His siblings and top managers also received lengthy prison terms, while 16 other defendants were acquitted due to lack of evidence, as stated in a .

The Thodex case, described by prosecutors as one of the country’s largest crypto frauds, allegedly involved the embezzlement of $253.71 million in digital assets and $356 million in investor damages, according to Türkiye Today. The indictment outlined how Thodex was used as a front for fraudulent activities, with funds funneled into wallets managed by Özer and his associates. Despite the magnitude of the scandal, prosecutors initially estimated losses at just $24 million, a figure that sharply differed from media and Chainalysis assessments, revealing a lack of transparency in the probe—a gap previously highlighted by Bloomberg.

Özer’s passing has sparked debate about investor safeguards in the unpredictable crypto market. Thodex’s downfall highlighted the dangers of unregulated exchanges and has led to increased calls for tighter regulation in Turkey and elsewhere. Although authorities have since implemented new rules for crypto trading, the incident continues to serve as a stark warning for those involved in the rapidly evolving digital asset space.

The inquiry into Özer’s death remains active, with investigators focusing on the possibility of suicide. His demise while incarcerated has also brought renewed scrutiny to prison conditions and the psychological well-being of inmates serving exceptionally long sentences. The situation highlights the intricate links between financial crime, regulatory hurdles, and the personal consequences of navigating the largely unregulated world of digital finance, a topic explored in the CryptoBriefing report.