Thodex Cryptocurrency Exchange Collapses in $2 Billion Exit Scam

Summary

In April 2021, Turkey-based cryptocurrency exchange Thodex collapsed in an exit scam, defrauding investors of $2 billion. Thodex’s founder, Faruk Fatih Ozer, fled to Albania with the stolen funds but was later arrested and extradited back to Turkey. In January 2023, Faruk Fatih Ozer and his two siblings were sentenced to 11,196 years in prison each for money laundering, fraud, and organized crime. Thodex’s rapid growth and promises of a safe and secure trading platform concealed its fraudulent intentions. The platform ceased all transactions in April 2021, claiming an evaluation of an unidentified partnership offer, and its leaders began deactivating their social media accounts.

Attackers

Faruk Fatih Ozer, the 29-year-old founder of Thodex, was the mastermind behind the exit scam. His sister, Serap, and brother, Guven, were also found guilty of the same charges.

Losses

Thodex defrauded investors of $2 billion.

Timeline

• April 22, 2021: Thodex announced that the platform has been “temporarily stopped” to handle an “abnormal fluctuation in the company accounts.” Demiroren News Agency published a photo of Ozer leaving Istanbul Airport.
• August 30, 2022: Fatih Ozer was arrested in Albania on an international warrant from Interpol.
• April 20, 2023: Fatih Ozer was extradited to Turkey.
• January 8, 2023: Faruk Fatih Ozer, Serap, and Guven were sentenced to 11,196 years in prison each for money laundering, fraud, and organized crime.

Early Indicators

• Free Token Promotion: Thodex offered new registrants millions of free Dogecoins, but many users reported not receiving them.
• Abrupt Closure: Thodex suddenly ceased all transactions, claiming evaluation of an unidentified partnership offer.
• Social Media Deactivation: Thodex’s leaders began deactivating their social media accounts, including the founder and CEO deleting his Twitter account.