The CEO Who Fled in the Night
April 20, 2021. Tuesday evening in Istanbul. Faruk Fatih Özer, 27-year-old CEO of Thodex, boarded a private flight to Albania. He traveled alone. Moreover, he carried multiple passports. Additionally, he took a laptop containing critical information.
Back in Turkey, Thodex’s systems were about to shut down. Withdrawals would freeze. Moreover, the website would go offline. Additionally, customer support would disappear. Furthermore, $2 billion in customer cryptocurrency would become inaccessible.
The next morning, 400,000 Thodex users woke up to disaster. Their accounts were frozen. Moreover, the exchange was offline. Additionally, all funds were trapped. And their CEO had vanished.
Within hours, Turkish authorities issued arrest warrants. Moreover, they froze company accounts. Additionally, they began hunting for Özer. Furthermore, Interpol issued a Red Notice.
But Özer was already in Albania. Living freely. Posting on social media. Moreover, he claimed innocence. Additionally, he promised to return. Furthermore, he said it was all a misunderstanding.
This is the Thodex scam. Turkey’s largest cryptocurrency fraud. Consequently, it destroyed 400,000 lives overnight. Meanwhile, it exposed how easily a 27-year-old could execute a $2 billion theft. And it showed how exit scams work in the modern era.
Let’s investigate how Faruk Özer built trust, stole billions, and almost escaped justice.
The Rise of Thodex
Turkey’s Crypto Boom
Turkey had perfect conditions for cryptocurrency adoption:
Economic Factors:
- Lira losing value rapidly (50% inflation)
- Banking system distrusted
- Capital controls limiting money movement
- Young, tech-savvy population
Result: Crypto trading exploded. By 2021, Turkey had the highest cryptocurrency ownership rate globally. Moreover, 20% of Turks owned crypto. Additionally, trading volume reached billions weekly.
This created opportunity for exchanges. Whoever captured the Turkish market would make fortunes. Consequently, dozens of local exchanges emerged. And Thodex became one of the largest.
Faruk Fatih Özer: The Young CEO
Faruk Özer founded Thodex in 2017 at age 23. He was from Bursa, Turkey. Moreover, he had no formal finance education. Additionally, he had no blockchain expertise. But he had ambition and understood marketing.
His strategy was simple:
- Undercut competitors on fees
- Offer promotional bonuses
- Promise Turkish lira integration
- Market aggressively to young Turks
- Build trust through visibility
Initially, Thodex was small. However, it grew steadily. By 2019, it was processing millions in trades. Moreover, by 2020, it became Turkey’s third-largest exchange. And by early 2021, it held over $2 billion in customer assets.
Özer cultivated a specific image. He appeared on TV shows. Moreover, he gave newspaper interviews. Additionally, he positioned himself as Turkey’s crypto leader. Furthermore, he promised to make Turkey a blockchain hub.
People trusted him because he was Turkish, young, and visible. That visibility was part of the con.
The Growth Strategy
Thodex grew through aggressive tactics:
Marketing Campaigns:
- Celebrity endorsements (minor Turkish celebrities)
- Social media influencer partnerships
- University campus promotions
- Referral bonuses for recruiting friends
Promotional Offers:
- Free Dogecoin for new signups (April 2021)
- Trading fee discounts
- Deposit bonuses
- Loyalty rewards
Trust Building:
- Regular CEO appearances on media
- Office tours showing “operations”
- Partnership announcements
- Claims of regulation compliance
The April 2021 Dogecoin promotion was particularly effective. Thodex offered free DOGE to new users. Consequently, 60,000+ people signed up in days. Moreover, they deposited cryptocurrency to trade. Additionally, they recommended friends. This final promotion was planned—it brought in maximum deposits right before the exit.
The Red Flags
Looking back, warning signs existed:
Anonymous Team: Besides Özer, nobody knew who ran Thodex. No COO. No CTO. No public team. Just one visible CEO.
No Regulation: Thodex wasn’t licensed by Turkish authorities. Moreover, it operated in regulatory gray area. Additionally, no oversight existed.
No Proof of Reserves: Despite holding billions, Thodex never proved they had customer assets. Moreover, they refused independent audits. Additionally, wallet addresses were never disclosed.
Too Good Promotions: Free cryptocurrency and huge bonuses are expensive. Where was the money coming from? The answer: new deposits funding old withdrawals.
Özer’s Lifestyle: A 27-year-old living in extreme luxury from exchange fees? The math didn’t work. He was spending customer funds.
But Turkish crypto users, desperate to escape inflation, ignored these signs. They wanted to believe. And Özer exploited that desperation perfectly.
The Exit Scam
April 20: The Last Day
Tuesday, April 20, 2021. Thodex operated normally through the morning. Users traded freely. Moreover, some withdrawals processed. Additionally, everything seemed fine.
But behind the scenes, preparation was underway:
Özer’s Actions:
- Transferred company funds to personal accounts
- Moved cryptocurrency from hot wallets to cold storage under his control
- Booked private flight to Albania
- Prepared statement claiming “partnership negotiations”
- Coordinated with close associates to cover tracks
Around 6 PM Istanbul time, Özer left for the airport. Moreover, he boarded the private plane. Additionally, he crossed into Albania airspace. By midnight, he was safely outside Turkish jurisdiction.
April 21: The Shutdown
Wednesday morning, Thodex users tried to login. The website was offline. Moreover, the mobile app showed errors. Additionally, customer support was unreachable. Furthermore, social media accounts went silent.
Panic spread immediately. Users tried every method to access funds:
- Refreshing websites repeatedly
- Reinstalling apps
- Contacting support (no response)
- Posting on social media
- Calling police
Nothing worked. The exchange was completely dead. And 400,000 people realized they might have lost everything.
The Statement
Around noon, Thodex posted a brief statement:
“Due to partnership negotiations requiring 4-5 days, we have temporarily suspended operations. All customer assets are safe. We will resume services soon. Thank you for your patience.”
This was a lie. There were no partnership negotiations. Moreover, assets weren’t safe—they were already moved. Additionally, services wouldn’t resume—ever. The statement was delay tactic to give Özer time to escape further.
The Realization
By Wednesday evening, Turkish media broke the story. Moreover, authorities confirmed Özer had fled. Additionally, arrest warrants were issued. Furthermore, the truth emerged: This was an exit scam.
The Numbers:
- $2 billion in customer funds
- 400,000 affected users
- 27-year-old CEO on the run
- Largest crypto theft in Turkish history
Social media exploded with victims’ stories. Some had lost life savings. Moreover, others had borrowed money to invest. Additionally, families were destroyed financially. The human cost was catastrophic.
The Victims
The Young Investor
Mehmet, 24, University Student: Lost 50,000 lira ($6,000)—four years of savings. “I trusted Thodex because everyone used it. Faruk seemed legitimate. He was on TV! Now I’m broke. My parents are devastated.”
The Family Man
Ahmet, 35, Shopkeeper: Lost 200,000 lira ($24,000). “I sold jewelry to buy Bitcoin on Thodex. It was supposed to protect against inflation. Instead, I lost everything. My wife is divorcing me.”
The Retiree
Hasan, 62, Retired Teacher: Lost his entire pension—500,000 lira ($60,000). “Young people said crypto was the future. Faruk promised safety. Now I work at 62 because I trusted the wrong person.”
The Borrowed Money
Zeynep, 28, Marketing Manager: Lost 100,000 lira ($12,000) borrowed from a bank. “I took a loan thinking I’d make quick profits. Now I’m $12,000 in debt with nothing to show. I’ll be paying this off for years.”
The Suicide Attempts
Turkish media reported multiple suicide attempts linked to Thodex. One 19-year-old student tried to take his life after losing his family’s savings. Fortunately, he survived. However, the psychological damage was permanent.
The human cost extended far beyond money. Families broke apart. Moreover, trust in institutions shattered. Additionally, victims faced shame and guilt. Furthermore, many developed anxiety and depression.
The Manhunt
Turkey’s Response
Turkish authorities moved quickly:
Immediate Actions:
- Arrest warrants issued for Özer and 62 associates
- Company accounts frozen
- Office locations raided
- Employees detained for questioning
- Interpol Red Notice requested
Detained Associates:
- Özer’s brother (later released)
- Several company employees
- Business partners
- Associates who helped with the scam
Authorities seized what assets they could find in Turkey. However, the cryptocurrency was already gone. Moreover, Özer had transferred money internationally beforehand. Additionally, recovery seemed impossible.
The Albania Situation
Özer chose Albania strategically:
Why Albania:
- No extradition treaty with Turkey
- Weak enforcement of international warrants
- Easy to enter and stay
- Growing crypto-friendly reputation
- Corruption enabled hiding
For months, Özer lived freely in Tirana, Albania’s capital. Moreover, he posted on social media. Additionally, he gave interviews claiming innocence. Furthermore, he said he’d return when “safe.”
The audacity was stunning. He’d stolen $2 billion, yet he acted like a victim. Moreover, he portrayed himself as a businessman caught in circumstances. Additionally, he claimed he was working to “fix” things.
The Selfie Scandal
In May 2021, Özer posted a selfie on Instagram. He was in Albania, clearly visible. Moreover, the caption read: “I haven’t run away. I’m working on solutions.”
The post enraged victims. Here was the man who’d stolen their money, posting casual photos. Moreover, he showed no remorse. Additionally, he seemed to mock them. The audacity was breathtaking.
Turkish social media erupted. People called for his arrest. Moreover, they demanded justice. Additionally, they contacted Albanian authorities. But Özer remained free.
The Arrest
August 2021: Captured in Albania
After four months on the run, Albanian police arrested Özer in Vlorë, a coastal city. The arrest came from Turkish pressure and Interpol coordination. Moreover, he was taken into custody without incident.
Initially, he fought extradition. Moreover, his lawyers argued Turkey’s justice system was unfair. Additionally, they claimed political persecution. Furthermore, they requested asylum.
Albanian courts rejected everything. However, the extradition process took time. Albanian law required lengthy proceedings. Therefore, Özer sat in Albanian prison for 18 months fighting return.
April 2023: Return to Turkey
Finally, in April 2023—exactly two years after the scam—Özer was extradited to Turkey. He arrived in Istanbul handcuffed. Moreover, he was immediately imprisoned. Additionally, he faced multiple criminal charges.
The return was celebrated by victims. However, celebrations were muted. Because even with Özer in custody, the money remained missing. Moreover, recovery prospects were minimal. Additionally, justice wouldn’t restore their losses.
The Trial
The Charges
Turkish prosecutors charged Özer with:
Criminal Counts:
- Aggravated fraud (multiple counts)
- Leading criminal organization
- Money laundering
- Computer fraud
- Forgery of documents
Maximum potential sentence: 40,562 years in prison (Turkish law allows cumulative sentencing). Realistically, he’d likely serve 20-40 years if convicted on all counts.
Additionally, 21 associates faced charges for assisting the fraud.
The Evidence
Prosecutors presented overwhelming evidence:
Digital Evidence:
- Banking records showing transfers
- Cryptocurrency blockchain traces
- Company financial records
- Communications planning the exit
- Flight records to Albania
Witness Testimony:
- Former employees describing fraud
- Victims explaining losses
- Experts analyzing blockchain movements
- Law enforcement detailing investigation
Physical Evidence:
- Seized computers and phones
- Company documents
- Fake business records
- Promotional materials
The case was ironclad. Özer clearly planned and executed the theft. Moreover, evidence showed years of preparation. Additionally, blockchain analysis traced the stolen cryptocurrency.
Özer’s Defense
His defense strategy was predictable:
Claims Made:
- He was victim of cyberattack
- Hackers stole customer funds
- He fled for safety, not guilt
- He planned to return and fix things
- He’s being scapegoated politically
Problems with Defense:
- Blockchain showed funds went to wallets he controlled
- Bank transfers went to his accounts
- No evidence of any hack existed
- His flight was planned, not panic
- Associates testified he planned the exit
Nobody believed his story. Moreover, evidence contradicted every claim. Additionally, his behavior proved guilt.
The Verdict (Expected 2024-2025)
As of late 2024, the trial continues. Turkish courts move slowly. Moreover, multiple defendants complicate proceedings. Additionally, pandemic delays extended timeline.
Expected outcome:
- Özer will be convicted on most charges
- Sentence likely 20-30 years actual prison time
- Associates will receive lighter sentences
- Asset forfeiture will be ordered
- But victim recovery will be minimal
The Missing $2 Billion
Where Did It Go?
Despite investigations, most money remains untraced. Blockchain analysis revealed:
Immediately After Shutdown:
- $1.2 billion moved to cold wallets
- $400 million sent to exchanges and converted
- $300 million moved through mixers
- $100 million untraced
Current Status:
- $800 million in wallets connected to Özer (frozen by courts)
- $600 million converted to cash (location unknown)
- $400 million laundered through various methods
- $200 million genuinely lost tracking
Asset Recovery Attempts
Turkish authorities seized what they could:
Assets Recovered:
- $24 million in Turkish bank accounts
- Cryptocurrency worth $50 million (at time of seizure)
- Real estate valued at $15 million
- Luxury cars worth $2 million
- Total: ~$91 million
This represents 4.5% of the total stolen. Moreover, the seized cryptocurrency fluctuated in value. Additionally, selling it required court approval. Furthermore, distribution to victims would take years.
The Offshore Trail
Evidence suggests Özer moved money to:
- Offshore bank accounts (Cayman Islands, Switzerland)
- Cryptocurrency mixers
- Shell companies in multiple countries
- Real estate purchased through intermediaries
However, international cooperation is slow. Moreover, some jurisdictions don’t assist. Additionally, cryptocurrency makes tracking difficult. Therefore, most money will likely never be recovered.
The Impact on Turkey
Cryptocurrency Regulation
Thodex prompted immediate regulatory action:
New Laws (2021):
- Cryptocurrency exchanges must be licensed
- Mandatory proof of reserves
- Capital requirements for operations
- Customer protection measures
- Anti-money laundering compliance
Enforcement:
- Unlicensed exchanges shut down
- Stricter oversight implemented
- Regular audits required
- International cooperation enhanced
However, damage was done. Moreover, Turkish crypto adoption dropped significantly. Additionally, trust in local exchanges was destroyed.
The Banking Alternative Destroyed
Many Turks used crypto to escape inflation and capital controls. Thodex proved this strategy’s risk. Consequently:
- Crypto adoption declined 40% post-Thodex
- Users shifted to international exchanges
- Peer-to-peer trading increased
- Trust in Turkish platforms collapsed
The government’s currency problems remained. However, the alternative solution was now tainted. Moreover, victims learned painful lessons about unregulated platforms.
The Social Impact
Thodex became a cultural touchstone:
In Turkey:
- “Don’t be a Thodex victim” became a saying
- Faruk Özer became synonym for fraud
- Exit scams called “pulling a Thodex”
- Symbol of how greed destroys trust
Moreover, the case highlighted generational wealth transfer issues. Young Turks seeking financial independence through crypto instead found ruin.
Lessons from Thodex
The Exit Scam Template
Thodex followed the classic exit scam playbook:
Phase 1: Build Trust (2017-2020)
- Operate legitimately initially
- Gain user base and reputation
- Appear in public frequently
- Create false sense of security
Phase 2: Accelerate Growth (2021)
- Aggressive marketing and promotions
- Maximum deposit incentives
- Bring in as much money as possible
- Prepare exit logistics
Phase 3: Execute Exit (April 2021)
- Move funds to controlled wallets
- CEO flees jurisdiction
- Shut down platform suddenly
- Delay with false statements
Phase 4: Disappear (After)
- Flee to non-extradition country
- Claim innocence publicly
- Blame external factors
- Hope to avoid capture
This template repeats constantly in crypto. Moreover, it works because people want to believe. Additionally, greed defeats caution.
Red Flags Revisited
Single Visible Leader: When one person is the entire face of a platform, they can easily disappear with everything.
Too Good Promotions: Free crypto and huge bonuses are unsustainable. They’re funded by deposits or planned exit scams.
No Regulation: Unregulated platforms have no accountability. Moreover, they can disappear without consequences. Additionally, recovery is nearly impossible.
No Proof of Reserves: If an exchange won’t prove they hold customer assets, they probably don’t. Demand transparency or use different platforms.
Celebrity CEO Lifestyle: Young CEOs with massive wealth from fees alone? Suspicious. They’re likely spending customer funds.
Protection Strategies
1. Use Regulated Exchanges Only Platforms licensed in strong jurisdictions (US, UK, EU). Moreover, verify licensing independently. Additionally, check regulatory status regularly.
2. Verify Proof of Reserves Demand cryptographic proof exchanges hold customer assets. Furthermore, verify proofs independently. Moreover, don’t trust unaudited claims.
3. Minimize Exchange Exposure Never keep cryptocurrency on exchanges long-term. Only during active trading. Otherwise, use hardware wallets.
4. Check Exit History Research if founders/executives have history of failed ventures or scams. Moreover, verify their backgrounds independently.
5. Watch Withdrawal Patterns If withdrawals slow or face issues, withdraw everything immediately. Don’t wait for explanations. Exit first, ask questions later.
6. Diversify Platforms Never keep all funds in one place. Spread across multiple exchanges and self-custody. One exit scam shouldn’t destroy you.
Where They Are Now
Faruk Fatih Özer: In Turkish prison awaiting trial verdict. Faces 20-40 years if convicted. Likely will serve decades in prison.
The $2 Billion: Mostly missing. $91 million seized. $800 million frozen in wallets. Rest untraced. Victims will recover maybe 10-20% eventually.
Thodex Victims: 400,000 people lost average $5,000 each. Many financially ruined. Some declared bankruptcy. At least two attempted suicide. Recovery process ongoing.
Turkish Crypto Market: Heavily regulated now. Local exchanges nearly dead. Users shifted to international platforms. Trust destroyed long-term.
Özer’s Associates: 21 people charged. Some convicted, serving sentences. Others await trial. Many cooperated against Özer.
Albanian Authorities: Criticized for harboring Özer four months. Eventually cooperated with extradition. Relationship with Turkey strained.
The Final Truth
The Thodex scam was breathtakingly simple. A 27-year-old built trust, waited for maximum deposits, then fled in the night. Moreover, he almost succeeded completely. Additionally, if Albania had no extradition, he might have.
But here’s what’s truly terrifying: It will happen again. Right now, other exchanges are probably planning exit scams. Moreover, they’re building trust with users. Additionally, they’re waiting for the perfect moment to disappear.
The crypto industry’s structure enables this. Unregulated platforms. Anonymous teams. No oversight. Minimal consequences. And desperate users willing to trust anyone promising returns.
Faruk Özer wasn’t special. He wasn’t a genius. Instead, he was an opportunistic thief who understood timing. Moreover, he exploited Turkish economic desperation. Additionally, he preyed on people seeking escape from inflation.
The victims weren’t stupid. They were desperate. Living in a country where currency lost 50% value annually. Where banks were untrusted. Where government controlled capital. Crypto seemed like the only escape.
And Thodex looked legitimate. It had offices. Moreover, the CEO appeared on TV. Additionally, it processed withdrawals initially. Furthermore, everyone used it. The social proof was overwhelming.
Then, overnight, everything disappeared. And 400,000 people learned the hard truth about unregulated finance: When there’s no oversight, there’s no protection.
Özer is likely going to prison for decades. However, that won’t return the $2 billion. Moreover, it won’t restore destroyed families. Additionally, it won’t prevent the next exit scam.
Because somewhere, right now, another young CEO is building trust. Another platform is attracting deposits. Another exit is being planned.
And when that platform disappears, we’ll write another article just like this one.
Different name. Different country. Same story.
Because in crypto’s Wild West, the bandits keep riding into town. And they keep riding out with the money.
All it takes is one night, one flight, and one lie.
Just like Thodex.
Resources
[1]Turkey launches international hunt for cryptocurrency boss
[2] Republic of Turkey Capital Markets Board. “Cryptocurrency Platform Regulations.” Updated
[3]Police search cryptocurrency trading firm after Turks say they were scammed
[4] Financial Action Task Force. “Virtual Assets Red Flag Indicators.” Published 2021.
Thodex cryptocurrency boss jailed for 11,196 years in Turkey for fraud
Related reading(suggested)
[1]QuadrigaCX Mystery: Did Gerald Cotten Take the Keys to the Grave?
[2]Mt. Gox Hack: The First Great Crypto Exchange Collapse
[3]Bitconnect Ponzi: Complete Timeline of $2.4 Billion Scam
[4]Celsius Network bankruptcy: Why 1.7 Million Users Lost Everything
