Manipulation scandal on the Istanbul Stock Exchange: assets frozen and arrests

Following irregularities on the Turkish capital market, the public prosecutor's office is investigating fraud, violations of the Capital Markets Act and the establishment of a criminal organization.

Istanbul Stock Exchange: Scandal on the capital market. Photo: AFP

Istanbul. A stock market manipulation scandal rocks Turkey. As part of investigations into irregularities in the capital market, the assets of 42 people and 46 legal entities were frozen, Justice Minister Akin Gürlek announced on X on Saturday evening. At least 45 people had previously been arrested, including executives from investment firms.

The Istanbul public prosecutor's office is investigating, among other things, fraud, violations of the Capital Markets Act and the establishment of a criminal organization, said Gürlek.

The investment fund crisis has been shaking Turkey since mid-September. According to the state news agency Anadolu, the Turkish capital market authority SPK liquidated 131 investment funds in which, according to media reports, billions of euros in assets were tied up. According to Anadolu, more than 455,000 investors are affected.

Turkish authorities are investigating whether fund valuations were artificially inflated. According to media reports, numerous small investors are affected. Due to massive inflation in Turkey, many people are investing their savings in stock transactions in the hope of protecting them against loss of value.

The largest opposition party Yeni spoke of a serious crisis and, according to Anadolu, called on the government to compensate investors. President Recep Tayyip Erdogan said the problem affected a limited area of ​​the capital markets and that there was no risk to the financial system or the Turkish economy.