Papara: $330M laundered, founder arrested in major illegal gambling case in turkey
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2 Jun 2025 •
Reading time: 3 minutes The arrest of Papara founder Ahmed Faruk Karslı, as part of a large-scale operation targeting illegal gambling in Turkey, has made headlines. Turkish authorities are intensifying their crackdown on illegal betting and money laundering. A total of 13 individuals have been arrested.
Turkish law enforcement has detained Ahmed Faruk Karslı, founder and chairman of Papara—one of Turkey’s leading electronic payment platforms. Starting at 5 a.m., police conducted raids across Istanbul, leading to the arrest of Karslı and 12 other suspects.
The arrests stem from a wide-ranging investigation by the Istanbul Chief Public Prosecutor’s Office into illegal gambling operations and money laundering schemes.
26,000 accounts involved, billions at stake
According to data released by Turkey’s Ministry of the Interior, the criminals allegedly used over 26,000 Papara accounts to place and transfer illicit bets. These accounts were used to conduct transactions totaling 12.9 billion Turkish lira—roughly $330 million. The money was then dispersed to 274 other accounts before being transferred to cryptocurrency wallets linked to individuals associated with four different illegal betting sites.
Money laundering, cybercrime, and crypto assets
Ahmed Faruk Karslı is facing charges including the establishment and leadership of a criminal organization and laundering proceeds from illegal activities. The investigation was coordinated by Istanbul’s Cybercrime Police Department, in collaboration with the Public Prosecutor’s Office and MASAK (the Financial Crimes Investigation Board). The embezzled funds were reportedly converted largely into cryptocurrencies.
Massive asset seizure
Authorities have seized assets estimated to be worth 5 billion Turkish lira (approximately $128.4 million). Seized items include eight companies operated under PPR Holding Inc., yachts, five boats, 74 vehicles, three safes, and seven luxury apartments and villas.
Government crackdown on illegal betting
Karslı’s arrest comes just two months after a separate wave of arrests targeting executives of PayFix, Aypara, and Ininal—three other payment platforms implicated in similar illegal networks. The Turkish government is determined to curb the spread of illegal gambling, which it views as a threat to economic and social stability.
Interior Minister Ali Yerlikaya praised the joint efforts of the judiciary, law enforcement, and MASAK:
“Illegal betting threatens not only individuals but also the future of our society. We will continue our fight with determination.”
A crisis of trust for turkish fintech
This scandal may lead to a tightening of regulations in the digital payments sector. Authorities could impose stricter requirements for user identity verification, transaction traceability, and financial transparency. For Turkish fintech companies—many of which aim to attract international investors and partners—this development is a serious blow to their credibility.
Papara: A flagship fintech in turkey
Founded in 2015 by Ahmed Faruk Karslı, Papara quickly emerged as a key player in Turkey’s digital finance sector. The platform enables users to transfer money, pay bills, buy foreign currencies, and manage prepaid cards, all through a user-friendly mobile application. Combining ease of use and accessibility, Papara attracted over 23 million individual users and more than one million businesses, establishing itself as an innovative alternative to traditional banks—particularly among young adults and the unbanked.
Driven by strong demand for digital payment solutions, Papara experienced exponential growth and surpassed a valuation of $2 billion in just a few years, becoming the country’s first fintech unicorn. The company stands out with a broad range of services—from domestic and international transfers to insurance, investment, and in-app payments. This rapid expansion and user trust made Papara a symbol of Turkey’s digital financial transformation—a status now jeopardized by the charges brought against its founder.