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Turkish prosecutors arrested 13 suspects Tuesday morning in a sweeping investigation into illegal gambling operations, including the owner of digital payment platform Papara, which authorities say facilitated money transfers for unlawful betting organizations.
According to the Istanbul Chief Public Prosecutor's Office, Ahmed Faruk Karsli, owner of Papara Electronic Money Inc., was arrested in simultaneous raids that began around 5 a.m. across Istanbul.
Authorities seized assets belonging to the alleged criminal organization, including eight companies led by PPR Holding Inc., yachts, five boats, three safe deposit boxes, 74 vehicles, and seven apartments and villas.
By court order, the Savings Deposit Insurance Fund was appointed trustee over the seized companies.
The investigation centers on charges of "establishing a criminal organization," "membership in a criminal organization," "money laundering," and violations of Türkiye's law governing sports betting and games of chance.
Prosecutors said Papara, which has operated as an electronic money institution since obtaining a license in 2016, became "a significant tool for financing illegal betting and gambling crimes" and posed risks to payment security.
Analysis by the Financial Crimes Investigation Board (MASAK), the Central Bank of the Republic of Türkiye (CBRT), and other institutions revealed systematic use of Papara's platform for illegal gambling operations, according to the prosecutor's statement.
Investigators found that 102 of the 26,012 accounts opened through Papara's systems were used on various illegal betting and gambling websites, generating substantial illegal financial volumes.
The funds were subsequently transferred to 274 different bank accounts before being directed to 16 cryptocurrency wallet addresses in an apparent money laundering scheme.
"It has been determined that the owners of five identified cryptocurrency wallet accounts were in collaboration with illegal betting organization leaders, and accordingly, the payment institution called Papara was in a covert agreement process with illegal betting organizations," prosecutors stated.
The investigation revealed that Papara collected fees at each stage of transfers involving cryptocurrency exchanges and illegal betting, with the company's post-transaction review process allegedly designed not to disrupt betting operations while ensuring continued revenue generation.
The operation represents one of the largest enforcement actions against digital payment platforms in Türkiye's ongoing crackdown on illegal gambling networks.
The detained suspects face charges that could result in significant prison sentences if convicted.
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