Turkish authorities have detained 13 people, including Papara’s founder and chairman, Ahmet Faruk Karslı, in a major investigation into illegal online betting and money laundering, according to reports from Reuters and state media. The investigation focuses on allegations that Papara, a leading Turkish fintech, was used to move money linked to illegal betting activities.
A statement from the Istanbul Chief Public Prosecutor’s Office, reported by Anadolu Agency (AA), said the suspects face charges including forming and being part of a criminal organization, money laundering, and violating laws related to betting and sports competitions. The prosecutors said Papara played a leading role in handling money from illegal betting, with betting groups using Papara’s accounts for their transactions.
Reports from the Central Bank of the Republic of Türkiye (CBRT), Turkey’s Financial Crimes Investigation Board (MASAK), and other institutions indicated that Papara was systematically and heavily used in illegal betting operations. Authorities said the company facilitated the transfer of funds tied to these activities and played an enabling role in the crimes, the statement noted.
According to the state-run news agency, over 26,000 accounts on Papara were used for illegal online betting, making transactions worth about 12.9 billion Turkish lira (roughly $330 million). Among these, 102 accounts were directly linked to illegal betting sites, and five crypto wallet accounts were found working with the leaders of illegal betting groups.
Papara has been licensed as an electronic money institution since 2016, meaning it can legally offer digital payment services. However, the prosecutors said the company earned fees on these transactions; including those connected to crypto exchanges and illegal betting—without interrupting the flow of illegal money.
As part of the investigation, authorities seized assets linked to the suspects, including yachts, boats, safe deposit boxes, vehicles, apartments, and villas. Turkey’s Savings Deposit Insurance Fund (TMSF), the government agency that handles deposit protection and seizes assets in criminal cases, has been put in charge of PPR Holding, the parent company that owns Papara and eight other companies involved.
PPR Holding is controlled by the founder, who owned around 90% of Papara as of May last year, based on trade registry data cited by Reuters.
Founded in 2016, Papara offers digital wallets, prepaid cards, and peer-to-peer transfers to millions of users in Turkey. Recently, the company expanded internationally by acquiring Pakistani digital wallet SadaPay, Spanish neobank Rebellion Pay, and Turkish investment platform Finfree.
The company is reportedly valued at nearly $2 billion and, according to its website, has more than 23 million users.
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