On May 27, 2025, Turkish authorities arrested 13 individuals, including Ahmed Faruk Karslı, the founder and chairman of Papara, a prominent digital payment platform. The arrests are part of a comprehensive investigation into illegal gambling and money laundering activities, with Papara accused of facilitating financial transactions for unauthorized betting operations.
The Istanbul Chief Public Prosecutor’s Office reported that over 26,000 Papara accounts were used to process illegal betting transactions totaling approximately 12.9 billion Turkish Lira (around $330 million). Funds from these accounts were allegedly funneled into 274 different bank accounts and subsequently transferred to 16 cryptocurrency wallets linked to illegal betting networks.
Authorities have seized assets associated with the alleged criminal activities, including eight companies under PPR Holding Inc., yachts, boats, vehicles, and real estate, with the total value estimated at 5 billion Turkish Lira. The Savings Deposit Insurance Fund (TMSF) has been appointed as trustee over the seized companies pending further legal proceedings.
Papara, established in 2015 and licensed as an electronic money institution since 2016, has been a significant player in Turkey’s fintech sector. The company has also been involved in high-profile sponsorships, including partnerships with Trabzonspor football club. The current investigation raises concerns about the oversight and regulation of digital payment platforms in relation to illegal gambling activities.
Interior Minister Ali Yerlikaya emphasized the government’s commitment to combating illegal betting and financial crimes, stating that such activities pose a threat not only to individuals but also to the broader society.
The case against Papara underscores the challenges faced by regulators in monitoring digital financial services and preventing their misuse for illicit purposes.