Papara founder faces 28 years in prison for serving illegal betting
New details have emerged in the investigation into the activities of Turkey’s largest payment provider, Papara. The company has been accused of creating the country’s largest money laundering scheme involving illegal bets, in which around 40 million Turkish citizens participated.
The final charges are part of a large-scale investigation by the Istanbul Chief Prosecutor’s Office, which is seeking prison terms of up to 28 years for Papara founder Ahmet Faruk Karsli (pictured) and four other executives. Prosecutors allege that the company facilitated large-scale financial transfers for illegal bookmakers under the guise of legitimate transactions.
Papara served more than 100 illegal platforms
In May, Papara, one of Turkey’s leading fintech platforms with a decade-long history, found itself at the centre of a high-profile investigation. The company’s founder and several senior managers were arrested, and control of Papara was transferred to the Turkish Deposit Insurance Fund (TMSF). The reason was suspicion of servicing illegal bets and violating AML policy.
Papara, licensed by the Central Bank of the Republic of Turkey (CBRT) to provide electronic money and payment services, offered financial services in accordance with international standards. Through the acquisitions of Spain’s Rebellion Pay and Pakistan’s SadaPay, the company expanded its presence beyond Turkey, reaching millions of users.
However, according to the indictment, supported by the CBRT audit report, between 2021 and 2023, 102 illegal betting platforms used more than 26,000 Papara accounts. The total suspicious transactions amounted to approximately 12 billion Turkish lira (roughly $287 million).
According to the investigation, funds from these accounts were transferred to 274 bank accounts within the country and then to five cryptocurrency wallets linked to betting networks. The prosecutor’s office claims that Papara acted as a financial intermediary in cooperation with betting barons, as operators of illegal betting networks operating outside the law are called in Turkey.
Massive data leak affecting 30 million citizens
As part of the investigation, new witness testimony reflecting the scale of the underground industry was recently included in the indictment. He said that illegal betting sites actively use local payment platforms to collect deposits from players and transfer funds to operators. Intermediaries receive a commission of 4% to 15% for such services, according to local media outlet Turkiye Today.
“This ecosystem cannot function without local payment intermediaries,” the witness said, naming Papara as the most prominent platform in this chain.
Despite having licenses from the Banking Regulation and Supervision Agency and the Central Bank of Turkey, some payment companies, according to the witness, continue to serve shadow bookmaker networks. Turkish agency Milliyet reported this.
The scale of the personal data leak is particularly alarming. The witness claims that 40 million players were directly or indirectly involved in the underground betting system. At the same time, the data of about 30 million people, including identification numbers, bank details, and passwords, was transferred to criminal networks based in Armenia and the UK.
Annual turnover exceeded $1 billion
According to new testimony, Papara has been linked to illegal betting channels with an annual turnover of 50 billion Turkish lira ($1.19 billion). The company has been described as a key financier of illegal gambling operations.
Attention was drawn to a former official from the Cybercrime Department who was involved in the scheme. It is said that this individual joined Papara as a senior PR manager and used their prior authority to boost the company’s market influence.
Under the leadership of Ahmet Faruk Karslı, Papara was accused of establishing an integrated structure with illegal betting. Technical and financial systems were reportedly exploited to launder gambling proceeds.
The investigation remains ongoing. If the indictment is accepted, Papara’s executives and other suspects will stand trial for forming a criminal organisation, money laundering, and violating Turkish gambling laws. If found guilty, the defendants could face years in prison, a ban on financial activities, and confiscation of assets.
This article was first published in Russian on 21 October 2025.
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