Turkish authorities detained Ahmet Faruk Karslı, the founder of Turkish digital payment application Papara, on 27 May 2025, as part of a criminal investigation into alleged facilitation of illegal online gambling. Simultaneously, the Turkish Savings Deposit Insurance Fund (TMSF), the country's state-administered savings protection and corporate resolution body, was appointed as trustee over Papara, placing the company under direct state administration whilst the legal proceedings advance.
Papara had more than 23 million users, offering consumer financial services including digital wallets, prepaid cards, and person-to-person money transfers.
ALLEGATIONS OF BILLIONS IN GAMBLING PAYMENT FLOWS
The investigation centres on allegations that Papara's payment infrastructure was used to process transactions totalling billions of lira on behalf of illegal online gambling platforms. Unlicensed online betting is illegal under Turkish law, and the authorities contend that Papara served as a payment channel facilitating flows between players and unlicensed betting operators across an extended period of time.
The appointment of TMSF as trustee transfers operational control of the company away from its founder and existing management whilst the investigation is conducted.