Illegal betting operation against Papara: Trustees appointed to 8 companies! Arrest warrants issued for senior executives

As part of a large-scale investigation conducted by the Istanbul Chief Public Prosecutor's Office, action has been taken against the electronic money institution Papara, which is alleged to have played a role in laundering proceeds from illegal betting.

With the deepening of the investigation, detention orders were issued for 13 people, including some of the company's senior executives.

8 COMPANIES SEIZED

Within the scope of the investigation, asset seizure measures were applied to a total of 8 companies, primarily PPR Holding A.Ş., as well as 1 yacht, 5 boats, 3 safe deposit boxes, 74 vehicles, 7 apartments, and 1 villa belonging to the suspects alleged to be the organization's leader and members.

STATEMENT FROM THE CHIEF PUBLIC PROSECUTOR'S OFFICE

The statement made by the Istanbul Chief Public Prosecutor's Office regarding the investigation is as follows:

"In relation to the investigation being conducted by our Chief Public Prosecutor's Office for the crimes of 'Opposition to Law No. 7258', 'Establishing an Organization for the Purpose of Committing Crimes and Being a Member of the Established Organization', and 'Laundering Assets Derived from Crime'; it has been determined in the current investigation file that the organization is led by an individual named Ahmed Faruk KARSLI, the owner of the payment institution named Papara, that the aforementioned individual received an operating license as an electronic money institution for Papara Elektronik Para A.Ş. starting in 2016, and that there are assessments that Papara Elektronik Para A.Ş. paved the way for illegal betting money traffic and that illegal betting organizations carried out their money transfers through the electronic money and payment services named Papara. It has been determined that fees could be collected at each transfer stage related to crypto exchanges and illegal betting for accounts held at Papara Elektronik Para A.Ş., and that conducting an examination of these accounts later did not disrupt betting transactions, while also enabling the institution to earn revenue from the aforementioned transactions.

In light of the findings and assessments contained in various reports prepared before the Central Bank of the Republic of Turkey, the Financial Crimes Investigation Board (MASAK), and other institutions regarding the business and operations of Papara Elektronik Para A.Ş., it is understood that the transactions carried out at Papara Elektronik Para A.Ş. also included transactions involving the crime of illegal betting, that the said transactions facilitated the commission of this crime by using Papara Elektronik Para A.Ş. systematically and intensively in the commission of the illegal betting crime, and that it facilitated the transfer of money in the commission of this crime. In this context, analysis studies revealed that a total of 26,012 accounts opened through Papara systems were used on 102 different illegal betting and gambling sites, that the illegal financial volume obtained from these accounts was of a high amount, and that these sums were transferred to 274 different bank accounts through the platform, and subsequently, these proceeds of crime were attempted to be laundered by being directed to 16 different crypto wallet addresses. It is understood that the owners of the 5 identified crypto wallet accounts were in cooperation with the illegal betting organization leaders, and accordingly, the payment institution named Papara was in a covert agreement process with illegal betting organizations. As a result of the investigation, it was seen that Papara Elektronik Para A.Ş. had become an important intermediary for the financing of illegal betting and gambling crimes, and that the institution's activities carried the risk of threatening the security of payments; therefore, a simultaneous detention, search, seizure, and examination order was issued for 13 suspects on 27/05/2025 at approximately 05:00.

Within the scope of the investigation, asset seizure measures were applied to a total of 8 companies, primarily PPR Holding Anonim Şirketi, as well as 1 yacht, 5 boats, 3 safe deposit boxes, 74 vehicles, 7 apartments, and 1 villa belonging to the organization leader and members.

With the decision of the Istanbul duty magistrate judge, the Savings Deposit Insurance Fund (TMSF) has been appointed as trustee for the seized PPR Holding A.Ş. and other companies. Suspect statements, search-seizure, and examination procedures are ongoing in the investigation. Further information will be provided regarding developments. Announced to the public."

ALİ YERLİKAYA SHARED FOOTAGE OF THE OPERATION

Interior Minister Ali Yerlikaya made a statement on his social media account regarding the operation.

İstanbul’da “Yasa Dışı Bahis” suçuna yönelik Papara A.Ş.'ye bugün (27 Mayıs) düzenlediğimiz eş zamanlı operasyonlarda; örgüt elebaşının da içerisinde bulunduğu 13 şüpheli yakalandı.

İstanbul Cumhuriyet Başsavcılığı ile Emniyet Genel Müdürlüğü Siber Suçlarla Mücadele Daire… pic.twitter.com/beg8cBIo8P

— Ali Yerlikaya (@AliYerlikaya) May 27, 2025

Sharing the footage of the moment of the operation, Yerlikaya stated the following:

"In the simultaneous operations we conducted today (May 27) against Papara A.Ş. for the crime of 'Illegal Betting' in Istanbul, 13 suspects, including the organization's ringleader, were apprehended.

Under the coordination of the Istanbul Chief Public Prosecutor's Office and the General Directorate of Security's Cyber Crimes Combat Department, and as a result of the work carried out by the Istanbul Provincial Police Department's Cyber Crimes Combat Branch;

It was determined that accounts were opened on behalf of our citizens in Papara systems to provide crime revenue financing for 'Illegal Betting' purposes, thereby facilitating the transfer of money obtained from crime.

As a result of the analyses made in MASAK reports;

It was determined that illegal betting was conducted through Papara accounts opened on behalf of 26 thousand 12 people, with a transaction volume of 12 Billion 879 Million 558 thousand TL,

That the money collected in these accounts was transferred to 274 different accounts, and

That it was transferred from these accounts to crypto wallet accounts belonging to 5 individuals associated with 4 different illegal betting sites.

Assets worth approximately 5 Billion TL, including 10 companies including Papara A.Ş., bank and crypto asset accounts belonging to the suspects, 6 sea vessels, 74 vehicles, and 8 residences, have been seized."

News Source: 12punto