Papara owner and 12 others arrested in Turkey in operation against illegal gambling
Some 13 people have been arrested, including the founder of the Papara online payment platform.
Turkey.- Some 13 people have been arrested in Turkey as part of an investigation into alleged illegal gambling operations. Those arrested include Ahmed Faruk Karslı, the founder and CEO of the online payment platform Papara.
Turkish media report that a series of raids was conducted in Istanbul from around 5am local time yesterday (Tuesday 27 May). Karslı reportedly faces charges of establishing and being a member of a criminal organisation and laundering proceeds from crime. Authorities seized assets worth TL5 billion (€113m).
According to the Istanbul Chief Public Prosecutor’s Office, these include eight companies led by PPR Holding Inc, yachts, five boats, three safe deposit boxes, 74 vehicles and seven apartments and villas.
Interior minister Ali Yerlikaya said an investigation by the Istanbul Provincial Police Department’s Cyber Crimes Combating Branch Directorate had led to a probe by the Financial Crimes Investigation Board (MASAK). This found that over 26,000 Papara accounts had been used to move illicit funds and finance illegal betting, with some TL12.9bn (€291.6m) in bets allegedly moved to 274 accounts and then to crypto wallets belonging to five people linked to four illegal betting sites.
Two months ago, PayFix’s chairman Erkan Kork and others were arrested in relation to alleged money laundering and the operation of an unauthorised betting network. Turkey’s Central Bank suspended PayFix’s operations as well as those of Aypara and Ininal.
Yerlikaya said: “Illegal betting is a crime that threatens the future of not only individuals but also society. “We continue our fight against illegal betting and cyber fraud with determination for the safety of our citizens.”
Papara was founded in 2015 to provide online money transfers, foreign-exchange and bill-payment services. It also offers a prepaid card, insurance and investment products. The company says it has more than 23m personal users and 1m business users making 31m transactions a month. It had reached an estimated valuation of $2bn.
