CEO of Türkiye’s Unicorn Papara Among 13 Arrested in Ongoing Probe
Hey Digital Banking Fanatic!
And no one was expecting this… Before dawn last Tuesday, Turkish police launched a series of raids across Istanbul. By the end of the day, 13 people had been arrested, including Ahmed Faruk Karslı, the Founder & CEO of Papara.
The arrests are part of a large investigation into illegal gambling and money laundering. Authorities say Papara’s platform was used to open more than 26,000 accounts tied to unlicensed betting websites. Many of those accounts were then used to move money through banks and crypto wallets in an attempt to hide its origin.
According to the Turkish Financial Crimes Investigation Board (MASAK), the total amount of suspicious transactions reached 12.9 billion Turkish Lira – about $330 million. Some of the funds were sent to 274 different bank accounts and then transferred to 16 crypto wallets.
As part of the investigation, police seized company shares, bank accounts, vehicles, boats, and properties. The total value of the seized assets is estimated at 5 billion TL, or around $128.4 million.
Türkiye’s central bank imposed temporary restrictions on Papara, partially suspending its services and enforcing daily transaction limits. Although the app remains accessible, users are currently unable to make transactions.
The Central Bank reassured the public that all user funds are protected under existing laws. This move comes amid a broader crackdown on illegal gambling through FinTech platforms. A similar case earlier this year saw multiple arrests and company seizures, underscoring the government’s intensified regulatory enforcement in the sector.
Papara has operated in Turkey since 2015. It’s the country’s only FinTech unicorn, valued at $2 billion last year, and is one of the most widely used digital payment apps in the country. Now, its founder faces charges including money laundering and founding a criminal organization. The company’s future is uncertain.
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NEWS
🇹🇷 13 arrested as Turkish FinTech Papara faces money laundering probe. The company is reportedly under investigation for alleged money laundering activities. The probe centers on the company's founder and CEO, Ahmed Faruk Karslı, who has faced scrutiny over regulatory compliance and governance practices.
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