The final indictment is part of a large-scale investigation by the Istanbul Chief Public Prosecutor's Office, which is seeking up to 28 years in prison for Papara founder Ahmet Faruk Karsli (pictured) and four other executives. Prosecutors allege that the company provided large-scale fund transfer services for illegal gambling operators under the guise of legitimate transactions.

Papara Served Over 100 Illegal Platforms

In May this year, Papara, one of Turkey's leading fintech platforms with a ten-year history, became the focus of a high-profile investigation. The company's founder and several executives were arrested, and control of Papara was transferred to the Turkish Deposit Insurance Fund (TMSF). The reason was suspicion of providing services for illegal gambling and violating anti-money laundering policies.

Papara is licensed by the Central Bank of the Republic of Turkey (CBRT) to provide electronic money and payment services and offers financial services in accordance with international standards. By acquiring Spain's Rebellion Pay and Pakistan's SadaPay, the company expanded beyond Turkey, reaching millions of users.

However, according to the indictment supported by CBRT audit reports, from 2021 to 2023, a total of 102 illegal gambling platforms used over 26,000 Papara accounts. The total amount of suspicious transactions was approximately 12 billion Turkish Lira (about $287 million).

The investigation revealed that funds from these accounts were transferred to 274 domestic bank accounts and then into five cryptocurrency wallets linked to the gambling network. The prosecutor's office claims Papara acted as a financial intermediary for gambling bosses, as illegal gambling network operators are called in Turkey.

Massive Data Breach Affects 30 Million Citizens

As part of the investigation, new witness testimony was recently added to the indictment, reflecting the scale of the underground gambling industry. The witness stated that illegal gambling websites actively use local payment platforms to collect player deposits and transfer funds to operators. According to Turkish media Turkiye Today, intermediaries charge commissions of 4% to 15% for such services.

The witness claimed that although some payment companies are licensed by the Turkish Banking Regulation and Supervision Agency and the Central Bank, they continue to serve underground gambling networks. Turkish media Milliyet had reported on this matter.

The scale of personal data breach is particularly concerning. The witness claimed that 40 million players were directly or indirectly involved in the underground gambling system. Simultaneously, data of approximately 30 million people, including ID numbers, banking information, and passwords, was transferred to criminal networks located in Armenia and the UK.

Annual Turnover Exceeds $1 Billion

According to the new testimony, Papara is linked to illegal gambling channels with an annual turnover of 50 billion Turkish Lira (about $1.19 billion). The company is described as the main financier of illegal gambling operations.

The investigation also mentions a former official from the cybercrime department who allegedly participated in the scheme. This person reportedly joined Papara as a Senior PR Manager and used their previous authority to enhance the company's market influence.

Under Ahmet Faruk Karslı's leadership, Papara is accused of establishing a structure integrated with illegal gambling. Technical and financial systems were reportedly exploited to launder gambling proceeds.