Turkish authorities arrested 13 individuals, including the owner of Papara, in a criminal probe into illegal gambling, money laundering, and digital payments.
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Papara Founder Arrested as Turkey Targets Digital Payments in Gambling Crackdown
Turkish authorities have arrested 13 individuals in a wide-reaching investigation into illegal gambling and money laundering, including the founder and CEO of digital payments company Papara. The operation, which began early Tuesday with coordinated raids across Istanbul, is among the country’s most significant enforcement actions involving a fintech platform.
According to a statement from the Istanbul Chief Public Prosecutor’s Office, Papara founder Ahmed Faruk Karslı was taken into custody on suspicion of facilitating financial transactions for unlawful betting operations. Investigators have linked the platform to organized crime groups allegedly operating within the illegal gambling ecosystem.
Authorities Seize Assets Tied to Alleged Criminal Network
During the raids, authorities seized assets tied to eight companies, including PPR Holding Inc., which prosecutors identified as being at the center of the financial network under investigation. Confiscated property includes yachts, boats, luxury vehicles, real estate holdings, and safe deposit boxes.
A Turkish court has appointed the Savings Deposit Insurance Fund (TMSF) as trustee over the companies involved, pending further legal proceedings.
Papara Under Scrutiny for Role in Betting Transactions
Papara, which has operated as a licensed electronic money institution since 2016, is accused of serving as a conduit for financial flows associated with illegal gambling platforms. Prosecutors allege the company’s systems were leveraged to open thousands of accounts, some of which were used to facilitate unregulated betting transactions.
Analysis conducted by Türkiye’s Financial Crimes Investigation Board (MASAK), the Central Bank, and other institutions found that a subset of Papara accounts were connected to illicit betting websites. In total, 102 accounts were flagged for suspicious activity among more than 26,000 created through the platform.
Authorities stated that the funds moved through these accounts were routed to nearly 300 different bank accounts before being converted and transferred to 16 cryptocurrency wallet addresses — a pattern investigators describe as consistent with money laundering tactics.
Allegations of Covert Agreements and Revenue-Sharing
In its public statement, the Prosecutor’s Office outlined additional claims that Papara had covertly coordinated with betting operators. According to the investigation, Papara allegedly collected fees at multiple stages of the transaction process and maintained internal review systems that were designed not to interfere with the operation of illegal betting platforms.
These findings suggest a deeper level of operational collaboration than previously suspected. Prosecutors said that owners of multiple identified cryptocurrency wallets had direct ties to gambling network leaders, with Papara allegedly serving as an intermediary in a broader digital payment chain.
A High-Profile Case in Ongoing Enforcement Efforts
The case comes as Turkish authorities continue to increase regulatory and law enforcement pressure on illegal gambling activities, especially where digital platforms and cryptocurrencies are involved. This investigation marks a notable development, as it directly implicates a licensed fintech company — a rare move that highlights growing scrutiny of digital payments infrastructure in connection with financial crime.
Papara has gained visibility in recent years through its expanding partnerships and cross-border transaction services, including a recent collaboration with international payments provider Thunes. It is unclear at this stage how the ongoing investigation may affect the company’s operations or licensing status.
Legal Proceedings Underway
The suspects, including Karslı, remain in custody as prosecutors pursue charges that include operating a criminal organization, money laundering, and violating Türkiye’s laws on betting and games of chance. If convicted, those involved could face lengthy prison terms.
Authorities have not commented on whether additional arrests or enforcement actions are expected, but investigations remain active. The case is being closely watched across the financial and fintech sectors, with observers noting the potential implications for oversight and compliance in Turkey’s growing digital payments industry.
