Turkish authorities have detained 13 individuals, including the founder and chairman of fintech firm Papara, Ahmet Faruk Karslı, as part of a wide-ranging investigation into alleged money laundering, illegal betting operations, and the formation of a criminal organization. The announcement was made by Interior Minister Ali Yerlikaya on Tuesday.
Founded in 2015, Papara received its electronic money institution license from Turkey’s Banking Regulation and Supervision Agency (BDDK) in 2016. The company expanded internationally in 2023, acquiring Pakistan-based SadaPay and Spain-based Rebellion Pay.
According to Yerlikaya, investigators determined that Papara facilitated illegal financial activities by enabling users to open accounts used for transferring proceeds from unlawful online betting. The platform currently serves approximately 21 million users, offering services such as online money transfers, foreign exchange transactions, and bill payments.
A report by state broadcaster TRT Haber confirmed that the detentions included senior executives, with court proceedings resulting in the appointment of Turkey’s Savings Deposit Insurance Fund (TMSF) as trustee over Papara. The court’s decision was based on findings from the central bank, the Financial Crimes Investigation Board (MASAK), and other regulatory bodies.
The Turkish central bank, which oversees payment service providers, announced it would impose daily transaction limits on Papara as a precautionary measure amid the ongoing investigation.
Authorities also seized assets belonging to the detained individuals, including 10 companies and associated bank accounts. The financial crimes unit reported that over 26,000 accounts were linked to illegal online betting activities, with total transactions valued at 12.9 billion Turkish lira (approximately $330 million).
