Faruk Fatih Özer will have to spend seven months and 15 days in prison.
Türkiye's once major cryptocurrency exchange, Thodex founder and ex-CEO Faruk Fatih Özer, has been handed a prison sentence.
Özer was sentenced to jail after he failed to provide requested tax documents during the trial linked to the alleged defrauding of investors of approximately $2 billion in digital assets.
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The legal saga involving Thodex has seen substantial developments since the shutdown of the crypto exchange and Özer's subsequent disappearance to Albania.
After being deported to Türkiye on an Interpol Red Notice, the CEO denied all allegations against him, asserting his innocence from October 30th, 2021, the start of his trial.
Interestingly, Özer's claim of not being an official of Thodex has been one of the cornerstones of his defense. During the trials, the man claimed that due to this reason, he can't provide the requested tax documents. Moreover, he asserted that during the critical period of investigation, a trustee had been managing the crypto exchange.
As per Hürriyet Daily News, Özer initially faced a potential five-year prison term for "smuggling." The court initially handed down a sentence of one year and six months, subsequently shortened to seven months and 15 days. Several factors, such as Özer's social ties and behavior during the trial, contributed to this reduction.
The legal issues facing Özer extend beyond tax-related offenses. He is still facing charges of defrauding Thodex investors. Özer persists to deny any wrongdoing, contending that he is being set up by the plaintiffs.
These developments coincide with an intriguing revelation by Divly, a Swedish crypto tax firm. In its recent study, the firm revealed that 99.5% of crypto investors neglected to pay taxes in 2022.
However, Divly's methodology for arriving at these estimates has been scrutinized, primarily due to the reliance on search volume data.
The former CEO of Thodex, Faruk Fatih Özer, now faces imprisonment in Turkey due to tax evasion, exemplifying the legal risks tied to the cryptocurrency world. As crypto taxation remains largely unfulfilled globally, it's a stark reminder of the necessity for regulatory compliance in this burgeoning industry.
