Turkish Prosecutors Target Papara Over Illegal Betting Transfers
Turkish authorities detained 13 people, including Papara’s founder, in an investigation into the fintech firm’s role in processing illegal online betting transactions. The court placed the company under trustee control during the probe into suspected money laundering and organized crime.
Prosecutors Accuse Papara of Aiding Betting Syndicates
The Istanbul Chief Public Prosecutor’s Office ordered the arrests as part of a wider crackdown on illegal betting. The investigation accuses Papara, a licensed electronic money provider, of enabling criminal networks to move funds linked to unlicensed gambling operations. Authorities named the company’s founder and chairperson, Ahmed Faruk Karslı, among the suspects.
According to a statement quoted by Anadolu Agency, Papara’s systems helped betting groups bypass financial oversight. The firm allegedly charged fees at each stage of transactions tied to crypto exchanges and illegal betting platforms. These transactions reportedly allowed the company to profit while avoiding disruptions from regulatory checks.
Financial Institutions Flag Repeated Misuse
Reports from Turkey’s Central Bank and financial intelligence unit MASAK point to consistent misuse of Papara’s platform. Authorities said the company played an active role in the transfer of funds for illegal betting activities. They described the system as “systematically and intensively used” in criminal operations.
An audit of over 26,000 accounts opened through Papara revealed that 102 were involved with unlicensed gambling websites. These accounts handled high volumes of illegal funds. Investigators also found five cryptocurrency wallet holders working directly with betting organization leaders.
Police Seize Assets and Freeze Business Operations
Law enforcement seized significant assets linked to the suspects. These included eight companies, yachts, five boats, 74 vehicles, safe deposit boxes, and seven residential properties. The criminal court of peace appointed Turkey’s Savings Deposit Insurance Fund (TMSF) to manage Papara and related firms during the investigation.
Security forces carried out the arrests in coordination with the prosecutor’s office. Karslı and 12 others remain in custody as investigators continue to examine Papara’s role in illegal betting schemes.