Founder of Thodex Sentenced for Failure to Provide Documentation

Thodex founder, Faruk Fatih Özer, was sentenced to 7.5 months in prison for failing to provide documentation.

Founder of Thodex Sentenced for Failure to Provide Documentation

Faruk Fatih Özer, the founder and former CEO of Thodex, neglected to provide the Tax Inspection Board with the required documentation. He claimed that he was not an official of Thodex during that period, which hindered his ability to present the requested books.

After 3 months, since his detainment in Türkiye, he was given a prison sentence of 7 and a half months for failure to submit requested documents during the trial.

Thodex, formerly one of the prominent cryptocurrency exchanges in Turkey, was abruptly closed, and its founder, Özer, fled to Albania. Whereafter, Interpol issued a Red Notice, and Özer was deported back to Turkey to be held accountable for the approximately $2 billion worth of cryptocurrencies owed to investors.

Despite Özer's continuous claims of innocence since October 30, 2021, he was unable to provide the requested documents to the Tax Inspection Board. He denied being an official of Thodex during that period. Thus, hindering his ability to present the requested books. Additionally, he claimed that a trustee had been appointed to manage the business on his behalf during the mentioned timeframe.

On Apr 22nd, 2021, Thodex published a statement on Twitter, written by Özer, where he was describing his innocence and assured that the issue will be resolved promptly.

According to Hürriyet Daily News, the prosecutor initially requested a five-year prison term for Özer on charges of "smuggling" under the Tax Procedure Law. Although initially, the court sentenced the crypto entrepreneur to 1 and a half years in prison, this was later reduced to 7 and a half months. The sentence reduction can be attributed to factors such as Özer's social relationships and overall behavior and demeanor exhibited throughout the trial.

Apart from the tax-related charges, Özer is facing accusations of defrauding Thodex investors and is currently awaiting a hearing to address these claims. Despite the allegations, the entrepreneur continues to claim his innocence, asserting that he has been falsely accused.

In a study conducted by Swedish crypto tax firm Divly, it was revealed that a staggering 99.5% of crypto investors did not fulfill their tax obligations in 2022.

According to the report, Finland leads with the highest percentage of crypto investors who fulfilled their tax obligations in 2022, estimated at 4.09%. Australia closely trails behind with 3.65% of crypto investors fulfilling their required tax payments.

Nevertheless, the reliability of the estimates is questionable, due to the methodology employed. The report highlights that relying solely on search volume data may not accurately represent the true number of crypto taxpayers, as not all individuals who fulfill their tax obligations necessarily search for crypto tax-related information online.

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