Turkey’s fight against illegal betting hits fintech unicorn Papara
In Turkey, an investigation into illegal betting and money laundering has led to the arrest of 13 people, including the founder and chairman of leading fintech company Papara.
Papara, which provides domestic and international money transfers as well as digital bill payment services, is being investigated by the authorities, revealed Interior Minister Ali Yerlikaya. The platform, which serves 21 million users, was allegedly used to transfer proceeds from illegal betting activities.
Karslı, who launched Papara in 2015 and turned it into one of Turkey’s most successful fintech companies, with a reported valuation above $2 billion, was among those arrested in early-morning raids across Istanbul. He faces charges of founding and participating in a criminal organisation and laundering criminal proceeds.
$330 Million in illegal betting funds
According to Interior Minister Ali Yerlikaya, Papara users were allowed to open accounts used for transferring proceeds from illegal betting activity. More than 26,000 user accounts are believed to have been involved in illegal transactions worth TL12.9 billion (approx. $330 million), with funds routed through 274 intermediary accounts before reaching cryptocurrency wallets linked to individuals operating illicit betting websites, reported Reuters.
“This crime network laundered vast sums and threatened not only individual victims but the social fabric as a whole,” said Yerlikaya. “We continue our fight against illegal betting and cyber fraud with determination for the safety of our citizens.”
Seized assets and court-appointed trustee
In the aftermath of the raids, Turkish courts placed Papara under the management of the Savings Deposit Insurance Fund (TMSF), which will act as a trustee while investigations continue. The decision follows joint reports from the Central Bank, MASAK (Financial Crimes Investigation Board), and other regulatory bodies.
Assets belonging to the detained individuals, including bank accounts, 10 affiliated companies, 74 vehicles, seven properties, and several boats and yachts, were also seized. Eight companies were found to be operating under PPR Holding Inc., linked to Papara’s corporate structure.
The Central Bank also introduced temporary daily transaction limits for the platform and sought to reassure users that funds held in electronic money institutions remain protected under Turkish law.
Interior Minister Yerlikaya praised the operation’s success: “I congratulate our governor of Istanbul, our Istanbul Chief Public Prosecutor’s Office who coordinated the operations, our Istanbul Provincial Police Chief who carried out the operations, our heroic police officers and our MASAK employees.”
