Papara founder arrested in Turkey over $330 million illegal gambling investigation

Turkish authorities have arrested the founder and chairman of online payments firm Papara, Ahmed Faruk Karsli, as part of a sweeping investigation into an illegal gambling network reportedly involving more than 26,000 accounts and billions of lira in suspect transactions.

Thirteen suspects were detained in raids across Istanbul early Tuesday, as prosecutors pursue charges of establishing a criminal organisation and laundering the proceeds of crime. Authorities also seized assets valued at 5 billion lira ($128.4 million), including companies, vehicles, real estate, and luxury vessels.

According to the Istanbul Chief Public Prosecutor’s Office, investigators uncovered illegal betting transactions totaling TL12.9 billion ($330 million) processed through 26,012 Papara accounts. Funds were ultimately funneled to cryptocurrency wallets linked to five individuals associated with four illegal betting websites.

“[Criminals] were using Istanbul-headquartered Papara accounts to transfer illicit funds and finance illegal betting,” said Interior Minister Ali Yerlikaya, citing findings from Turkey’s Financial Crimes Investigation Board (MASAK). He added: “Illegal betting is a crime that threatens the future of not only individuals but also society.”

The operation was led by the Istanbul Provincial Police Department’s Cyber Crimes Unit in coordination with national cybercrime and prosecutorial authorities. It follows a similar probe two months ago that led to the arrest of PayFix’s chairman and others on related charges.

The Turkish Central Bank has suspended operations of PayFix, Aypara, and Ininal as part of its broader crackdown on illegal betting and unauthorised financial services.

Among the seized assets were eight companies under PPR Holding Inc, five boats, three safe deposit boxes, 74 vehicles, and seven apartments and villas.

Papara, founded in 2015, provides digital payment services including money transfers, prepaid cards, and in-app purchases. The company was the first Turkish fintech to surpass a $1 billion valuation and now claims more than 23 million individual users and over one million business clients.

“We continue our fight against illegal betting and cyber fraud with determination for the safety of our citizens,” Yerlikaya added.