Papara founder arrested in $330M illegal online betting crackdown in Turkey

Authorities in Turkey have arrested the founder of Papara, one of the country’s top fintech companies, as part of a major crackdown on illegal online betting. The operation uncovered more than 26,000 fake accounts and revealed transactions totaling approximately 12.9 billion Turkish lira ($330 million).

Interior Minister Ali Yerlikaya shared the news on Tuesday, saying the arrest of Ahmed Faruk Karslı and others, as well as asset seizures, followed a series of coordinated raids in Istanbul aimed at tackling organized cybercrime and financial fraud.

“In our simultaneous operations conducted today (May 27) in Istanbul targeting the crime of ‘Illegal Betting’ involving Papara Inc., 13 suspects, including the leader of the criminal organization, were apprehended,” Yerlikaya said in a statement (translated to English) published on Facebook.

İstanbul’da “Yasa Dışı Bahis” suçuna yönelik Papara A.Ş.'ye bugün (27 Mayıs) düzenlediğimiz eş zamanlı operasyonlarda; örgüt elebaşının da içerisinde bulunduğu 13 şüpheli yakalandı.

İstanbul Cumhuriyet Başsavcılığı ile Emniyet Genel Müdürlüğü Siber Suçlarla Mücadele Daire… pic.twitter.com/beg8cBIo8P

— Ali Yerlikaya (@AliYerlikaya) May 27, 2025

Papara accused of facilitating illegal gambling in Turkey

The investigation, led by the Istanbul Chief Public Prosecutor’s Office along with the Cyber Crimes Department and the Istanbul Cyber Crimes Unit, uncovered widespread abuse of the Papara payment system. Interior Minister Ali Yerlikaya explained that criminals were opening accounts in the names of unsuspecting citizens to move money made from illegal online betting.

“Illegal betting is a crime that threatens not only individuals but also the future of our society,”

An analysis by Turkey’s Financial Crimes Investigation Board (MASAK) showed that illegal betting operations were run through Papara accounts registered to 26,012 people. The accounts handled almost 12.9 billion Turkish lira in transactions.

The money was then routed through 274 intermediary accounts before ending up in cryptocurrency wallets owned by five people connected to four different illegal betting websites.

As part of the investigation, authorities have seized around 5 billion Turkish lira ($128 million) in assets. This includes corporate accounts linked to ten companies, including Papara Inc., as well as the suspects’ personal bank and cryptocurrency holdings. They also confiscated six boats, 74 vehicles, and eight homes tied to the operation.

Yerlikaya pointed out the broader societal danger posed by such crimes. “Illegal betting is a crime that threatens not only individuals but also the future of our society,” he said. “We remain steadfast in our fight against illegal betting and cyber fraud to ensure the safety of our citizens.”

Banks crack down on fintech platform

After the operation, the Central Bank of the Republic of Türkiye (TCMB) released an official statement confirming that Papara had been placed under state trusteeship.

“Based on reports from the Central Bank of the Republic of Turkey (CBRT), the Financial Crimes Investigation Board (MASAK), and other relevant institutions, and within the scope of the investigation numbered 2024/231483 by the Istanbul Chief Public Prosecutor’s Office, the court has appointed the Savings Deposit Insurance Fund (TMSF) as trustee (kayyum) over Papara Elektronik Para A.Ş. (the Institution),” the TCMB announced.

The central bank also noted that “temporary daily transaction limits will be applied to payment operations conducted through the Institution” during the trusteeship process. It added that users’ funds remain protected, stating: “In accordance with Article 22 of Law No. 6493, users’ funds held with payment and electronic money institutions are safeguarded in protected accounts at banks.

“The CBRT continues its supervisory and oversight activities to ensure that payment and electronic money institutions operate safely, continuously, effectively, and efficiently,” the statement said.

Although authorities haven’t officially released the names of all the suspects, local media reports confirm that Papara’s founder and CEO is among those who have been detained. So far, the company hasn’t made any public statements about the situation.

Featured image: Istanbul Chief Public Prosecutor’s Office

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