An İstanbul court has ordered the seizure of assets belonging to the Papel electronic payment company as part of an investigation into alleged money laundering and illegal betting, the İstanbul Chief Public Prosecutor’s Office said.
The Savings Deposit Insurance Fund (TMSF) was appointed as trustee on Friday to Papel Elektronik Para ve Ödeme Hizmetleri A.Ş. as part of the İstanbul-based investigation.
The probe, carried out by the prosecutor’s office’s Bureau for the Prevention of Terrorism Financing and Money Laundering Crimes, also led to coordinated police operations in eight provinces and detention warrants for 41 suspects.
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Prosecutors said in a statement that an investigation was launched into the company and some of its executives on allegations of violating Law No. 7258, which regulates betting and games of chance, and laundering the proceeds of crime.
According to the statement inspections by the central bank and analyses conducted by the Financial Crimes Investigation Board (MASAK) found that revenue generated from illegal betting, illegal forex trading and fraud schemes was transferred into the financial system through electronic money and payment service providers.
Prosecutors said the funds were later routed through various companies in Turkey and abroad in an effort to obscure their origin.
As part of the investigation, police carried out searches and seizures at suspects’ homes and workplaces to identify their roles within the alleged criminal organization and to collect financial and digital evidence. Assets believed to have been obtained through criminal activity were seized and the TMSF was appointed as a trustee to the Papel payment company, the statement said.
Simultaneous police operations were conducted in İstanbul, Ankara, Antalya, Balıkesir, Muğla, Tokat, Kocaeli and Bursa by the Istanbul police department’s financial crimes unit. Searches and seizures were carried out at multiple locations during the operations.
Papel was established in 2020 by businessman Seyhan İbrahim Yıldırım and obtained its operating license from the central bank of Turkey in 2022, allowing it to provide electronic money and payment services. Papel and P Tech, another company founded by Yıldırım in 2019 that provides banking and software solutions for electronic money institutions, together employ more than 150 people in Turkey, with Papel reportedly serving around 200,000 users.
The operation against Papel is the latest in a series of high-profile investigations into financial institutions and digital platforms accused of enabling illegal activities in Turkey’s expanding fintech and online gaming sectors.