Turkey seeks 40,000-year jail sentences for crypto CEO, officials

A Turkish prosecutor asked for  jail sentences as long as 40,564 years for 21 officials of the Istanbul-based Thodex cryptocurrency exchange, about a year after it was shut down and its CEO disappeared.

CEO Faruk Fatih Ozer, 28, was seen in footage at Istanbul airport last April. Turkish police have not been able to locate him, though he is wanted with a red notice, Interpol says.

The indictment accuses the defendants of creating a criminal organization, fraud and money laundering, Demiroren News Agency reported last week, according to Bloomberg News.

Thodex was part of a Turkish cryptocurrency boom that attracted investors seeking to protect their savings from inflation and a weakening currency.

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The indictment said total losses at the exchange were about $24 million, but a report in February by Chainalysis estimated losses at $2.6 billion.

Ozer said in a statement issued last April from parts unknown that he would repay investors and return to Turkey, the report said.

Last year, Turkish police reportedly detained 62 people in the initial investigation, The Block reported at the time. Ozer was said to have fled to Tirana, Albania, according to Turkish police.

 

About Author

Mike Millard has worked as an editor for Bloomberg and Reuters, various newspapers and websites. He lived in Asia for more than two decades and now calls the Greek island of Corfu home. He is the author of three books.