Turkey’s central bank has revoked the operating license of İstanbul-based electronic money and payment services company Papara, following an investigation into alleged involvement in illegal betting activities that became public in May.
The decision was published in the Official Gazette on Friday. The central bank said the company’s authorization to operate as an electronic money institution had been canceled under Articles 16 and 19 of Turkey’s law regulating payment systems, payment services and electronic money institutions.
Papara, one of Turkey’s largest fintech firms, has been under investigation since May for allegedly facilitating illegal online betting. The probe led to the arrest of 11 people, including the company’s founder and CEO, Ahmed Faruk Karslı. Four other suspects were released after questioning.
The probe, led by the İstanbul Chief Public Prosecutor’s Office, accuses the suspects of running an organized crime network involved in illegal gambling, money laundering and membership in a criminal organization. Prosecutors allege that Papara’s systems were used to facilitate financial transactions linked to illegal betting operations.
Assets belonging to 10 companies, including Papara Hoding A.Ş., have been seized, and access to suspects’ bank and cryptocurrency accounts have been blocked as part of the investigation.
Confiscated assets also include six boats, 74 vehicles and eight properties. The total value of the seized assets was estimated at around 5 billion Turkish lira ($155 million), according to a statement from Interior Minister Ali Yerlikaya in May.
As part of the investigation, an İstanbul court also appointed the Savings Deposit Insurance Fund (TMSF) as a trustee to oversee the 10 companies, including Papara Holding A.Ş.
According to the Financial Crimes Investigation Board (MASAK), 26,012 Papara accounts were allegedly used for illegal betting transactions totaling nearly 12.9 billion lira ($306.2 million), with the funds funneled into 274 different accounts.
In early June Papara told its customers that their balances were temporarily inaccessible due to an ongoing review, adding that restrictions would be lifted gradually for accounts found to be unrelated to the investigation.
The investigation into the company also had business repercussions, with Fenerbahçe Sports Club ending its sponsorship deal with Papara on June 4.
Founded in 2015 Papara is one of Turkey’s leading financial technology firms, offering electronic money and payment services. According to the company website, it serves over 23 million individual users and 14,000 merchants, with a card transaction volume exceeding 8.5 billion lira ($263.5 million].
It employs more than 1,000 people and has over 8 million Papara cardholders. A licensed electronic money institution since 2016, Papara joined Visa’s global partner network in 2019 and has been featured twice on the Global FinTech 100 list of KPMG, a global network of professional services firms specializing in audit, tax and advisory services.
Founder Karslı served as CEO from 2020 to 2022 and resumed the role in February 2025. The company also had high-profile sponsorship deals with major Turkish sports clubs, including Trabzonspor, Fenerbahçe and Beşiktaş.
The operation against Papara is the latest in a series of high-profile investigations into financial institutions and digital platforms accused of enabling illicit activities in Turkey’s expanding fintech and online gaming sectors.
In a similar operation in March, an İstanbul court ruled for the arrest of 21 people out of 52 detained as part of an investigation into illegal betting operations. Among the arrestees was businessman Erkan Kork, the owner of Flash TV, Pozitifbank and the PayFix digital payment service, which are among the 23 companies that were seized as part of the operation.