Thodex Chief Executive Sentenced to Prison for Failure to Provide Tax Documents

The founder and former CEO of the defunct Turkey-based crypto exchange Thodex, Faruk Fatih Ozer, was recently sentenced for failing to provide requested tax documents.

Ozer denied being the exchange's CEO, which inhibited him from submitting the requested documents.Thodex allegedly ceased trading in 2021, leaving more than 400,000 users unable to access their funds, a total of $2 billion in digital assets.

Thodex Boss Arrested and Charged for Tax Evasion

The Turkish court handed Faruk Fatih Ozer a prison sentence of seven months and 15 days. This sentence emerged from Ozer's failure to provide the demanded tax documents during the trial, which has been on since 2021.

His troubles started in April 2021, when the crypto exchange he founded and worked as CEO suddenly ceased trading, deposits, and withdrawals amid reports of law enforcement raids.The halt of operations left over 400,000 users unable to transact with their assets worth $2 billion worth of crypto assets.

Amid the Turkish exchange's sudden halt, Ozer became the main target of an Interpol Red Notice. Though he fled to Albania, leaving his workers and the exchange's users clueless about the next time, Ozer was arrested by Interpol in August 2022.

Throughout the court trial, Ozer defended his innocence, claiming that he was the exchange's chief executive officer at the time, making it difficult for him to present the demanded documents.

He further claimed that a trustee had been elected to manage the exchange operations during the timeframe.According to Hurriyet Daily News, Ozer's prosecutor originally sought a prison tenure of five years on the charge of smuggling" under the Tax Procedure Law.

The court sentenced the CEO to one year and six months prison term, though it was further reduced to seven months and 15 days.

This was due to various factors like Ozer's behavior after the purported crime, his social relations, his conduct amid the trial, and the possible impact of the ruling on his future.

Furthermore, Ozer is awaiting a hearing on allegations that he scammed Thodex investors in addition to the tax-related charges. He also denies the allegations, saying that the defendants have framed him.

Cryptocurrency Investors' Tax Payment Reports

A report from a Swedish cryptocurrency tax firm, Divly, reveals that 99.5% of cryptocurrency investors did not pay their taxes last year.

According to the report, Finland ranks highest in the number of crypto investors who paid the needed taxes on virtual currencies in 2022, with a 4.09% rate.Australia ranked second with 3.65%, before Austria (2.75%) and Germany (2.63%).

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