Faruk Fatih
Özer, the runaway Founder of the defunct Turkish cryptocurrency exchange Thodex
who was extradited to Turkey earlier in April, has been sentenced to seven
months and 15 days in prison. Local outlet Hürriyet Daily News reported
today (Tuesday) that the former Thordex CEO received the sentence for
failing to submit certain documents demanded by the Turkish Tax Inspection
Board.
On October
30, 2021, the Board issued a notification to Özer to submit certain documents
related to his business. However, the crypto entrepreneur failed to hand the
documents over.
During a hearing on the case at the Anatolian 17th Criminal Court of First Instance, the Thodex
Founder claimed that he was not in possession of the requested books when the notice was issued as the exchange
was run by a
trustee during the period. As a result, he argued, he was not a
company official at the time.
Meanwhile, prosecutors in the case accused
Özer of ‘smuggling’ under the Turkish Tax Procedure Law,
according to Hürriyet. While they initially
sought a prison term of up to five years, the court settled for a year and
six months before finally deciding on seven months and 15 days. The reduction was hinged
on Özer’s social relations and conduct during the trial, the outlet
reported.
On top of this, the court
opted to defer the enforcement of the sentence. However,
Özer
continues to face allegations that he defrauded the investors of Thodex.
Thodex Founder Denies Wrongdoing
The defunct cryptocurrency exchange platform halted trading and withdrawal in
April 2021 and subsequently
went silent, causing about $2 billion in loss to nearly 391,000 customers. Turkish police authorities later launched a large-scale
investigation into the
platform.
After Thodex went dark, Özer fled Turkey but was later arrested in Albania in August last year, following a red notice issued by the International Police.
Turkish
prosecutors have accused Özer and other Thodex executives of establishing a
criminal organization, engaging in fraud through informatics systems and
laundering proceeds from criminal activities. They are also seeking jail sentences of up to 40,564 years against 21 of the
exchange’s founders and executives, Finance Magnates reported.
However,
Özer has denied any wrongdoings and claims that he is being framed. The Thodex Founder made his first defence against the charges during a hearing
held earlier on June 12, according to the local media outlet.
Turkey remains one of the top jurisdictions across the world with strong demand and interest in digital assets. The transcontinental country ranks 12th on blockchain-based data company, Chainalysis’ 2022 Global Crypto Adoption Index Top 20.
Binance and CS to cut staff; big banks partner on FX trading; read today’s nuggets.
Faruk Fatih
Özer, the runaway Founder of the defunct Turkish cryptocurrency exchange Thodex
who was extradited to Turkey earlier in April, has been sentenced to seven
months and 15 days in prison. Local outlet Hürriyet Daily News reported
today (Tuesday) that the former Thordex CEO received the sentence for
failing to submit certain documents demanded by the Turkish Tax Inspection
Board.
On October
30, 2021, the Board issued a notification to Özer to submit certain documents
related to his business. However, the crypto entrepreneur failed to hand the
documents over.
During a hearing on the case at the Anatolian 17th Criminal Court of First Instance, the Thodex
Founder claimed that he was not in possession of the requested books when the notice was issued as the exchange
was run by a
trustee during the period. As a result, he argued, he was not a
company official at the time.
Meanwhile, prosecutors in the case accused
Özer of ‘smuggling’ under the Turkish Tax Procedure Law,
according to Hürriyet. While they initially
sought a prison term of up to five years, the court settled for a year and
six months before finally deciding on seven months and 15 days. The reduction was hinged
on Özer’s social relations and conduct during the trial, the outlet
reported.
On top of this, the court
opted to defer the enforcement of the sentence. However,
Özer
continues to face allegations that he defrauded the investors of Thodex.
Thodex Founder Denies Wrongdoing
The defunct cryptocurrency exchange platform halted trading and withdrawal in
April 2021 and subsequently
went silent, causing about $2 billion in loss to nearly 391,000 customers. Turkish police authorities later launched a large-scale
investigation into the
platform.
After Thodex went dark, Özer fled Turkey but was later arrested in Albania in August last year, following a red notice issued by the International Police.
Turkish
prosecutors have accused Özer and other Thodex executives of establishing a
criminal organization, engaging in fraud through informatics systems and
laundering proceeds from criminal activities. They are also seeking jail sentences of up to 40,564 years against 21 of the
exchange’s founders and executives, Finance Magnates reported.
However,
Özer has denied any wrongdoings and claims that he is being framed. The Thodex Founder made his first defence against the charges during a hearing
held earlier on June 12, according to the local media outlet.
Turkey remains one of the top jurisdictions across the world with strong demand and interest in digital assets. The transcontinental country ranks 12th on blockchain-based data company, Chainalysis’ 2022 Global Crypto Adoption Index Top 20.
Binance and CS to cut staff; big banks partner on FX trading; read today’s nuggets.
