Fintech Scandal: Papara Under Investigation for Money Laundering
Turkish authorities detained 13 people in connection with fintech company Papara over alleged money laundering and illegal betting. The investigation led to the Savings Deposit Insurance Fund being appointed as a trustee. The central bank imposed daily limits on transactions. Papara reportedly facilitated illegal betting transactions worth $330 million.
In a significant development, Turkish authorities detained 13 individuals linked to the fintech company Papara, as part of an investigation into allegations of money laundering and illegal betting, Interior Minister Ali Yerlikaya announced on Tuesday.
The company, which boasts 21 million users and offers services like online money transfers and bill payments, is accused of allowing illegal betting transactions. Notably, the detentions include Papara's founder and chairman, Ahmet Faruk Karsli.
Following these developments, a court appointed the Savings Deposit Insurance Fund as a trustee for Papara. In response, the central bank has imposed temporary daily limits on transactions to ensure compliance and secure user funds. Authorities have seized assets and accounts, uncovering illegal betting transactions worth 12.9 billion lira.
(With inputs from agencies.)
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