coinfomania.com
A cryptocurrency exchange boss alongside his cohort of executives could face the longest jail term in crypto history if found guilty over an alleged $24 million fraud.
A Bloomberg report on Friday revealed that a Turkish prosecutor has issued an international arrest warrant for the founders and executives of Thodex crypto exchange one year after the company halted its operations.
40,564 Years in Prison?
The report noted that prosecutors are seeking up to 40,564 years of jail terms for all 21 executives, including the company’s CEO, Faruk Fatih Ozer, who fled with customers’ assets worth about millions of dollars.
So far, Turkish authorities have arrested 62 people who allegedly had ties to Thodex. The suspects were apprehended in concurrent raids carried out in different cities of the country, including Istanbul.
Police also raided the company’s headquarters located in the Asian part of Istanbul and seized both computers and other digital properties.
Authorities are currently investigating Ozer on charges of “aggravating fraud and founding a criminal organization,” the report added.
Back in April 2021, Turkish security officers revealed footage of Ozer walking through passport control at Istanbul airport on his way to an unnamed location.
Sources later disclosed that the Thodex CEO was headed to Albania and the Turkish police team had flown to four countries, including Albania, in an attempt to find him.
Faruk Fatih Ozer remains a person of interest with a red notice attached to his name.
The Fall of Thodex Crypto Exchange
Thodex is a cryptocurrency exchange that was reportedly involved in a notorious rug pull sometime last year.
Blockchain analytics firm Chainalysis reported in February that the total loss recorded in the fraud scheme amounted to $2.6 billion, but the total figure in the legal filing against the company and its executive was $24 million.
After the fall of Thodex, Ozer released a statement from an anonymous location promising to refund investors and to return to Turkey to face charges.
More Crypto Scams
Meanwhile, cryptocurrency theft and fraud have been on the rise since the asset class started garnering interest from mainstream investors.
The most recent heist was an Irish woman who was arrested for her involvement in a crypto fraud worth $1.1 million.
As reported, the woman allegedly acted as an investment intermediary between the scammers and the victim without obtaining approval from the necessary authorities to carry out such a role.