Papara Founder Detained Amid Major Turkish Crackdown on Illegal Gambling and Digital Payments

In a sweeping investigation that has sent shockwaves through Turkey’s fintech and financial crime landscape, authorities have arrested 13 individuals, including Ahmed Faruk Karslı, the founder and CEO of Papara, a licensed digital payments company. The operation, described as one of the most comprehensive enforcement actions targeting a fintech entity in the country, began with coordinated early-morning raids across Istanbul.

The Istanbul Chief Public Prosecutor’s Office confirmed the arrest of Karslı on charges of facilitating transactions linked to unlawful betting operations. Investigators claim that Papara was used as a financial conduit by organized crime groups operating within the illegal gambling ecosystem. The platform, established in 2016 as an electronic money institution, is now at the center of a broad investigation into money laundering and illicit digital payments.

During the raids, authorities seized assets tied to eight companies, including PPR Holding Inc., which prosecutors believe played a central role in the financial network under scrutiny. The list of confiscated property is extensive and includes yachts, boats, luxury vehicles, real estate assets, and safe deposit boxes. In response, a Turkish court appointed the Savings Deposit Insurance Fund (TMSF) as trustee over the implicated companies pending further legal proceedings.

According to prosecutors, Papara’s internal systems were exploited to open tens of thousands of accounts, a portion of which facilitated unregulated betting transactions. Türkiye’s Financial Crimes Investigation Board (MASAK), along with the Central Bank and other regulatory bodies, reviewed the platform’s activity and found that at least 102 accounts showed signs of suspicious activity out of over 26,000 linked to the investigation.

Authorities allege that funds from these accounts were funneled through nearly 300 different bank accounts before being converted and transferred to 16 cryptocurrency wallets — a transaction trail that investigators say is consistent with established money laundering methods. In the words of the Prosecutor’s Office, "Papara allegedly served as an intermediary in a broader digital payment chain," and the platform's systems "were leveraged to support the infrastructure of illegal betting operations."

Further intensifying the gravity of the case, the investigation revealed what prosecutors describe as covert revenue-sharing arrangements and coordination between Papara and gambling operators. The statement alleges that Papara “collected fees at multiple stages of the transaction process” and implemented “internal review systems that were designed not to interfere with the operation of illegal betting platforms.” These mechanisms suggest not just passive oversight but what prosecutors suspect may be active operational collaboration.

Authorities claim that owners of several identified crypto wallet addresses involved in the laundering scheme have direct ties to known leaders of illegal gambling networks, thereby further implicating Papara in enabling the financial mechanics of these criminal enterprises.

This case comes amid heightened law enforcement efforts in Turkey to combat illegal gambling, especially where digital payments and cryptocurrencies are involved. Unlike previous investigations that targeted offshore platforms and unregulated exchanges, this probe marks a significant shift as it implicates a licensed and widely-used fintech company. Papara has enjoyed increasing prominence in recent years, expanding its user base and forging international partnerships, including a recent collaboration with global payments provider Thunes. The investigation’s impact on these relationships and on Papara’s operational status remains uncertain.

Legal proceedings are underway, and all 13 suspects remain in custody as prosecutors pursue charges ranging from forming a criminal organization to laundering money and violating national laws on betting and games of chance. If convicted, those involved face substantial prison terms. Authorities have not confirmed whether additional arrests will follow, but the investigation remains active and is being closely watched by stakeholders in Turkey’s digital finance ecosystem.

As scrutiny of digital payment platforms intensifies, the Papara case may set a precedent for future regulatory and enforcement approaches in a sector that has until now largely operated in a space of rapid growth with limited friction.

By fLEXI tEAM