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.
While the court dismissed charges related to organizing a criminal enterprise, it upheld his convictions for fraud and money laundering, local reports confirm.
Özer, who was sentenced to over 11,190 years in prison for allegedly defrauding more than 400,000 investors of approximately $2 billion, remains behind bars. However, the appeals ruling means he will no longer serve time for organized crime-related charges. The court has also ordered a retrial on certain aspects of the case, sending it back to a lower court for further proceedings.
Despite this development, Özer will remain in custody as his convictions for fraud and money laundering still stand. His legal team continues to push for a reduction in sentencing, arguing that the punishment is excessive.
The court trial for the Thodex case has been ongoing since October 30, 2021. Throughout the proceedings, Özer refused to provide the necessary documentation to the Tax Inspection Board, claiming that he was not a Thodex representative. Özer argued that a trustee had been appointed to manage the company on his behalf during the period of the allegations.
Thodex, once one of Turkey’s largest cryptocurrency exchanges with a daily trading volume of around $585 million, abruptly halted withdrawals in April 2021, leaving users unable to access their funds. Authorities later determined that Özer had fled to Albania, where he was arrested in 2022 and extradited to Turkey in 2023.
Initially, Özer claimed he was securing funding from foreign investors to restore the platform. However, he later alleged that a cyberattack had drained Thodex’s assets. His sudden disappearance triggered a criminal investigation, an international manhunt, and widespread protests from affected investors.
With the appeals court’s ruling, the legal battle surrounding Thodex continues, leaving many investors still seeking justice for their lost funds.
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