Papara Founder Faces 28 Years in Prison for Turkey’s Largest Money Laundering Scheme
The Istanbul Prosecutor’s Office has concluded its investigation into Papara payment system founder Ahmet Faruk Karslı and four top executives of the company.
Charges and Investigation
The indictment seeks up to 28 years in prison for organizing the largest money laundering scheme in Turkey’s history. A Central Bank audit revealed that from 2021 to 2023, over 26,000 Papara accounts were used by 102 illegal betting operators, processing $286.8 million. An anonymous witness claimed the actual annual turnover reached $1.19 billion, describing it as the largest scheme in the country’s financial history.
Prosecutor Actions and Arrests
Karslı was arrested in May, and assets worth $167 million were seized, including a yacht, 74 cars, and a historic Bosphorus yacht. The company was placed under the management of the Deposit Insurance Fund.
Scale of Illegal Betting
According to the witness, illegal betting websites attracted around 40 million Turkish citizens. These platforms used Papara to transfer funds with fees ranging from 4–15% and to move money into cryptocurrency wallets, concealing illicit profits.
Key Operational Figures
| Period | Papara Accounts | Illegal Platforms | Amount ($ million) |
|---|---|---|---|
| 2021–2023 | 26,000+ | 102 | 286.8 |
| Annual Turnover per Witness | – | – | 1,190 |
Data Breaches and Cyber Threats
The witness stated that personal data of around 30 million users—including ID numbers, bank details, and passwords—was transferred to networks in Armenia and the UK. These data were used in illegal betting schemes.
Papara’s Links to Organized Crime
The prosecution alleges that Papara acted as a financial intermediary for known “betting barons.” Under Karslı’s leadership, the company built a corporate structure integrated with illegal betting and used its technical and financial systems to circulate revenues through the legitimate economy.
Company Facts
- Founded in 2015
- Licensed by the Central Bank of Turkey
- Provides services including electronic transfers, prepaid cards, accounts, and digital wallets
- Expanded via acquisitions of Rebellion Pay (Spain) and SadaPay (Pakistan)
Role of Former Cybercrime Officer
The witness noted that a former Cybercrime Department officer joined Papara as a senior PR manager, leveraging his experience to strengthen the company’s market position.
Prosecutor Measures and Legal Outlook
If the indictment is accepted by the court, Papara’s leadership and other suspects will face trial for organizing a criminal group, money laundering, and violating Turkey’s betting laws.