Founder of Papara Arrested Amidst Illegal Gambling Investigations
On Tuesday, Turkish law enforcement apprehended 13 individuals, including Ahmed Faruk Karslı, the founder and chairman of the digital payment platform Papara, in an extensive crackdown on illicit gambling activities.
Karslı was taken into custody during early morning raids across Istanbul, facing serious allegations that include operating a criminal organization and laundering money derived from illegal activities. In the operation, assets amounting to TL5 billion (approximately $128.4 million) were confiscated.
Ali Yerlikaya, Turkey’s interior minister, revealed that the Financial Crimes Investigation Board (MASAK) found evidence that Papara accounts based in Istanbul were allegedly being exploited to channel illegal funds and support unauthorized betting operations.
This development comes shortly after the arrest of the chairman of another payments company, PayFix, along with several associates, who faced similar charges related to money laundering and unauthorized gambling networks. In response to these ongoing investigations, Turkey’s Central Bank (TCMB) put a stop to the activities of PayFix, Aypara, and Ininal.
Extensive Network of Illegal Betting
The inquiry into Papara unveiled a network involving over 26,000 accounts connected to illegal betting activities. Transactions reached a staggering TL12.9 billion, with funds being funneled into 274 separate accounts and eventually linked to cryptocurrency wallets tied to various illegal gambling websites.
The operation resulted from a coordinated effort by the Istanbul Provincial Police’s Cyber Crimes Unit, in collaboration with the Istanbul Chief Public Prosecutor’s Office and the General Directorate of Security’s Cyber Crime department.
In response, Minister Yerlikaya commended the efforts of law enforcement and emphasized the societal risks posed by illegal gambling, stating, “We remain committed to combating illicit betting and cyber fraud for the safety and integrity of our citizens.”
Papara: A Rising Fintech Giant
Founded in 2015, Papara has quickly established itself as a key player in the digital finance landscape, offering services such as online money transfers, currency exchanges, and bill payments. The company, now valued at over $2 billion, was the first Turkish fintech to surpass a valuation of $1 billion.
Currently, Papara serves more than 23 million individual users and over one million businesses. It facilitates upwards of 31 million transactions each month, providing a range of services including prepaid cards, domestic and international transfers, in-app payments, insurance, and investment solutions.
The ongoing investigation serves as a stark reminder of the complexities and challenges faced by the fintech industry, particularly when confronting the darker elements of financial misuse.