Starknet (strk) 
Thodex Founder’s Conviction Partially Overturned in Turkish Court
The Istanbul Regional Court of Justice has made a significant ruling in the case of Faruk Fatih Özer, the founder of the now-defunct cryptocurrency exchange Thodex. Özer’s conviction has been partially overturned, with the court dismissing charges related to starting an organization to commit a crime.
Reduced Sentence, Retrial Ordered
Although Özer was initially sentenced to over 11,190 years in prison for allegedly defrauding more than 400,000 investors out of $2 billion, the appeals ruling means he will no longer serve time for organized crime-related charges. The court also ordered a retrial on certain aspects of the case, sending it back to a lower court. Despite this, Özer will remain in custody for other crimes.
Background of the Thodex Collapse
Thodex collapsed in April 2021 after abruptly halting withdrawals, 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. His legal team is now pushing for further leniency, arguing that his sentencing was disproportionate.
Accusations and Controversy
Özer has been accused of defrauding thousands of investors and laundering millions through Thodex. After the exchange suddenly ceased operations, he fled to Albania, claiming he was securing funding from foreign investors. Initially, he promised to cooperate with Turkish authorities and return customer funds. However, he later claimed he was the victim of a cyberattack that depleted the exchange’s assets.
His disappearance triggered a criminal investigation, an international manhunt, and protests from investors fearing they had lost their savings.
Thodex’s Rise and Fall
Thodex was one of Turkey’s largest cryptocurrency exchanges, boasting over 400,000 users and a daily trading volume of approximately $585 million. The exchange’s sudden collapse and Özer’s subsequent flight and arrest have raised concerns about the regulation and security of cryptocurrency exchanges in Turkey.
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