Turkish prosecutors have arrested 13 individuals, including Ahmet Faruk Karslı, founder and chairman of the fintech firm Papara, as part of a sweeping crackdown on illegal gambling and financial crime. The raids, launched early Tuesday morning across Istanbul, have led to the seizure of assets worth TL5 billion ($128.4 million).
The arrests come just weeks after Papara made headlines with its acquisition of Pakistan-based Sadapay, a fast-growing digital wallet platform. The Istanbul Chief Public Prosecutor’s Office has filed charges involving the establishment of a criminal organization, money laundering, and facilitating unlawful betting activity.
Karslı faces charges of founding a criminal organisation and laundering illicit funds. Turkey’s interior minister, Ali Yerlikaya, stated that the Financial Crimes Investigation Board (MASAK) had found evidence linking Papara accounts to illegal betting networks and the transfer of criminal proceeds.
Authorities allege that individuals placed bets using accounts registered under more than 26,000 names, funnelling TL12.9 billion through 274 intermediary accounts before converting the funds into cryptocurrency. Assets seized include yachts, luxury vehicles, real estate, and companies tied to PPR Holding Inc.
The arrest follows similar actions taken against executives of rival platforms PayFix, Aypara, and Ininal, whose operations were suspended by Turkey’s central bank.
Founded in 2015, Papara has grown into one of Turkey’s top fintech platforms, offering money transfers, bill payments, and prepaid cards. With over 23 million personal users and more than a million businesses on its platform, Papara was last valued at over $2 billion.