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Turkish authorities arrested former Borsa Istanbul General Manager Korkmaz Enes Ergun as part of the fund scandal, as Justice Minister Akin Gurlek announced on Tuesday that the number of suspects held in custody had reached 112.
Ergun, detained on Oct. 31 on suspicion of membership in a criminal organization and bribery, appeared before a court in Istanbul after police questioning and a statement to prosecutors. The court ordered his arrest on charges of receiving bribes on Monday.
The investigation stems from a market crisis in mid-September, when several investment funds failed to meet investor redemption requests, triggering a major sell-off.
Türkiye's Capital Markets Board (SPK) subsequently ordered the liquidation of 131 investment funds managed by seven portfolio management companies. The decision affected more than 455,000 investors and involved an estimated combined asset base of ₺936.3 billion ($19.1 billion) at the time.
Ergun served as deputy general manager responsible for listing activities before becoming general manager in March 2021. In that role, he oversaw initial public offering assessments, reviews of listed companies, and market operations.
Following Ergun's detention, Borsa Istanbul's board of directors met on Nov. 1 and appointed Deputy General Manager Atila Tureli to serve as acting general manager.
Separately, prosecutors issued detention warrants for six additional people on Monday as the investigation expanded into the country's financial regulatory institutions.
The group includes former SPK Deputy Chairman Enver Usca, former SPK board member Bulent Murat Haholu and former head of the regulator's Corporate Finance Department Kursat Sait Babuccu.
Former head of the SPK's Market Surveillance and Supervision Department, Ercan Urkan, is also among those targeted, alongside Banking Regulation and Supervision Agency (BDDK) Department 4 Head Mustafa Alper Tas and Tera Holding Administrative Affairs Director Umit Sincanli.
Authorities have not publicly detailed the specific allegations against the six individuals.
Justice Minister Akin Gurlek said the investigation had identified 433 suspects, with 112 remanded in custody, 186 placed under judicial control and 38 fugitives wanted under arrest warrants.
Authorities have also imposed asset freezes and blocked bank accounts belonging to 359 individuals and 111 legal entities, Gurlek added.
"The network that infiltrated our high-level oversight mechanisms has become quite evident as of today," Gurlek said, noting that statements from suspects have uncovered new names and deepened the investigation.
Legal proceedings have been initiated or are underway against bureaucrats at various levels, individuals, companies, and political figures allegedly linked to the suspected criminal network, the minister noted.
Gurlek also disclosed that approximately ₺30 billion ($600 million) in money, real estate and shares had been returned through a voluntary restitution account established under the Savings Deposit Insurance Fund (TMSF).
The mechanism allows individuals and companies suspected of benefiting from irregular market activity to voluntarily return funds to designated accounts managed by the TMSF, Türkiye's state-backed deposit insurance and resolution authority.
The recovered assets are intended to help compensate investors who suffered losses when investment funds failed to meet redemption requests.
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