May 22, 2024
Latest Cryptocurrency News

Crypto Exchange Thodex Founder Receives 11,196-Year Prison Sentence

Faruk Fatih Ozer, the founder of the cryptocurrency exchange Thodex, has been handed a staggering 11,196-year prison sentence by a Turkish court, convicting him of various crimes, including fraud. Ozer, who established Thodex in 2017, fled to Albania following the collapse of Thodex. He, along with his two siblings, has been found guilty of aggravated fraud, leading a criminal organization, and money laundering.

The precise extent of investor losses incurred during the Thodex meltdown remains unclear. The prosecutor’s indictment suggests losses of 356 million Turkish liras ($13 million), but Turkish media outlets have reported figures as high as $2 billion. According to a study by Chainalysis, the value of cryptocurrency lost in the Thodex case amounts to $2.6 billion.

On the other hand, Sam Bankman-Fried, the former CEO of the now-defunct FTX, is facing a litany of charges, including securities fraud, wire fraud, commodities fraud, and money laundering. If convicted on all counts, he could potentially receive a prison sentence lasting more than a century.

Bankman-Fried resigned as CEO of FTX on November 11 and was replaced by court-appointed FTX CEO John Ray, who previously oversaw energy trading firm Enron through bankruptcy proceedings.

He is scheduled to go on trial for eight criminal charges on October 2, 2023. Following a court hearing on December 22, 2022, a federal judge ordered Bankman-Fried’s release from custody after his attorneys and federal prosecutors agreed to a $250 million bond, the largest ever in such cases.

Similarly, Do Kwon reportedly faces eight felony counts related to investor fraud, securities violations, mail fraud, and commodity theft. Kwon could potentially face a sentence exceeding 100 years in the United States, as compared to a maximum of 40 years in Korea, owing to the severity of his multiple offences.

Photo by Cameron Casey

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