The founder of the Turkish cryptocurrency network Thodex, Faruk Fatih zer, was found guilty of a big fraud case by the Anatolian 9th High Criminal Court. Six more people were held in addition to Zeer, totaling 21 people who were allegedly involved in the fraud.
The court issued a harsh ruling. A astounding term of 11,190 years and six months in jail was imposed on zer, together with his siblings Güven zer and Serap zer. These serious charges included “establishing, directing, and participating in a criminal organisation,” “engaging in sophisticated fraud,” and “money laundering.”
The court also required an additional term of six years, four months, and fifteen days for each sibling. Additionally, they received a hefty 135 million lira penalties for “committing fraud using digital systems.” Each of the zer siblings has served a total of 11,196 years, 10 months, and 15 days in prison.
When Thodex abruptly stopped all activities in 2021, it was an unexpected turn for the once-leading cryptocurrency in Turkey. Numerous customers were left stranded as a result of this unexpected closure since they were unable to access their estimated $2 billion worth of digital assets. When zer left Turkey following the suspension, the situation grew murkier and rumours of a possible exit fraud spread.
Despite the numerous accusations, Zeer was unwavering in his denials. Thodex was only a business enterprise that unavoidably failed, according to the defence that Zeer gave in court. I have the knowledge to run any international institution, he bragged. The business I started at the tender age of 22 is proof of my ability. My actions would have been much more sophisticated if I had planned to establish a criminal gang.
In its indictment, the Anadolu Chief Public Prosecutor’s Office made clear the Thodex platform’s dishonest tactics.
According to the statement, money amounting to 253 million 714 thousand 909 lira in cryptocurrencies was transferred from three different accounts under zer’s management. It’s interesting to note that a large portion of these digital assets ended up in Malta-based bitcoin wallets. On August 30, 2022, Zeer was captured in Albania, adding a new chapter to the narrative. By April 20, 2023, he had been extradited to Turkey in accordance with the law, and by April 23, he was being held at the Anadolu Justice Palace.
Their analyses highlight the Thodex case’s significance in the cryptocurrency world and its wider implications for the regulation of digital assets and the protection of investor interests.