Turkish police have detained 13 people, including the founder of the prominent fintech company Papara, as part of a sweeping investigation into illegal betting operations allegedly conducted through the platform, Interior Minister Ali Yerlikaya announced on Tuesday.
The probe, led by the İstanbul Chief Public Prosecutor’s Office, accuses the suspects of running an organized crime network involved in illegal gambling, money laundering and membership in a criminal organization. Prosecutors allege that Papara’s systems were used to facilitate financial transactions linked to illegal betting operations.
Yerlikaya said in a statement on X that that assets belonging to 10 companies, including Papara Hoding A.Ş., have been seized and that access to suspects’ bank and cryptocurrency accounts have been blocked. Confiscated assets also include six boats, 74 vehicles and eight properties. The total value of the seized assets was estimated at around 5 billion Turkish lira ($155 million).
As part of the investigation, an İstanbul court appointed the Savings Deposit Insurance Fund (TMSF) as a trustee to oversee the 10 companies, including Papara Holding A.Ş.
İstanbul’da “Yasa Dışı Bahis” suçuna yönelik Papara A.Ş.'ye bugün (27 Mayıs) düzenlediğimiz eş zamanlı operasyonlarda; örgüt elebaşının da içerisinde bulunduğu 13 şüpheli yakalandı.
İstanbul Cumhuriyet Başsavcılığı ile Emniyet Genel Müdürlüğü Siber Suçlarla Mücadele Daire… pic.twitter.com/beg8cBIo8P
— Ali Yerlikaya (@AliYerlikaya) May 27, 2025
According to a report by Turkey’s Financial Crimes Investigation Board (MASAK), illegal gambling operations were conducted using 26,012 Papara accounts opened in the names of Turkish citizens. These accounts reportedly processed more than 12.8 billion lira ($400 million) in transactions. Funds were allegedly funneled into 274 other accounts.
Papara, one of Turkey’s largest electronic money and payment services providers, had not issued a public statement in response to the allegations as of Tuesday afternoon. Its founder, Ahmed Faruk Karslı, is among the detainees.
Founded in 2015, Papara is one of Turkey’s leading financial technology firms, offering electronic money and payment services. According to company website, it serves over 23 million individual users and 14,000 merchants, with a card transaction volume exceeding 8.5 billion lira ($263.5 million]. It employs more than 1,000 people and has over 8 million Papara cardholders. A licensed electronic money institution since 2016, Papara joined Visa’s global partner network in 2019 and has been featured twice on Global FinTech 100 list of KPMG, a global network of professional services firms specializing in audit, tax and advisory services.
Founder Karslı served as CEO from 2020 to 2022 and resumed the role in February 2025. The company also has high-profile sponsorship deals with major Turkish sports clubs, including Trabzonspor, Fenerbahçe and Beşiktaş.
Tuesday’s operation is the latest in a series of high-profile investigations into financial institutions and digital platforms accused of enabling illicit activities in Turkey’s expanding fintech and online gaming sectors.
In a similar operation in March, an İstanbul court ruled for the arrest of 21 people out of 52 detained as part of an investigation into illegal betting operations. Among the arrested suspects was businessman Erkan Kork, the owner of Flash TV, Pozitifbank and PayFix digital payment service, which are among the 23 companies that were seized as part of the operation.