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A Turkish court on Friday ordered the arrest of 11 suspects detained as part of an illegal betting and money laundering probe targeting the popular fintech platform Papara, including its founder, Ahmed Faruk Karsli.
The arrests followed legal proceedings at a criminal peace court after 15 suspects were detained earlier this week as part of an ongoing investigation led by the Istanbul Chief Public Prosecutor’s Office. The suspects face charges of “establishing a criminal organization,” “membership in a criminal organization,” “laundering proceeds of crime,” and "violating Turkish law on betting and games of chance."
Prosecutors allege that Papara, which has held an electronic money institution license since 2016, systematically enabled financial transfers for illegal betting networks. The platform reportedly charged fees at every stage of the transfer process, without disrupting the transaction flow, and profited from related activity even as account reviews were delayed.
Findings from Türkiye’s central bank, the Financial Crimes Investigation Board (MASAK), and other authorities indicate that Papara's infrastructure was used intensively in the execution of illegal betting operations, and that the platform played a facilitating role in the movement of illicit funds.
Investigators identified 26,012 accounts opened through Papara, 102 of which were directly tied to illegal betting or gambling websites. Funds from these accounts were distributed to 274 bank accounts and subsequently funneled into 16 cryptocurrency wallet addresses to obscure the money’s origin.
Prosecutors stated that at least five wallet holders were found to be working in collaboration with leaders of the illegal betting networks. This, they noted, suggested that Papara was engaged in a covert understanding with criminal organizations.
As part of the operation, prosecutors imposed asset freeze measures on multiple properties linked to the suspects, including eight companies such as PPR Holding, a yacht, five boats, 74 vehicles, three safe deposit boxes, and seven residential properties. Trustees from Türkiye’s Savings Deposit Insurance Fund (TMSF) were appointed to oversee the seized companies under a court order.
On Tuesday, the Central Bank of the Republic of Türkiye confirmed that temporary daily transaction limits were imposed on Papara’s services during the trustee-led process. While users can still access the application, transaction functions have been suspended or generate errors. The bank described this as a “temporary suspension” and said that specific implementation details would be announced by Papara.
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