[REVISION HISTORY]

Financial irregularities in Turkey fund market

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-18 14:54 UTC → 2026-09-18 18:41 UTC · added ~~removed~~

Allegations of significant financial irregularities within Turkey’s free fund market emerged following a rapid expansion of fund portfolios, which grew from 2.23 trillion TL at the end of 2024 to 6.21 trillion TL by July 2026. Özgür Karabat, an Istanbul deputy for the YENİ Party, raised concerns regarding market health and potential artificial inflation of funds, citing warnings from the international research firm MSCI. As the situation progressed, YENİ Party Chairman Özgür Özel criticized the impact of illegal forex and fund fraud on small investors, noting that many of the 7 million stock market investors are particularly vulnerable. Özel specifically alleged that the Tera Fund saw a “948-fold increase in value while closed” before being used for stock price manipulation, suggesting potential involvement by high-ranking officials in the bureaucracy and justice system. In response, the Capital Markets Board (SPK) initiated the liquidation of 131 funds across seven portfolio management companies, including Tera. İş Bankası and Ziraat Bankası have been appointed to manage the conversion of assets to cash for investor payouts. Treasury and Finance Minister Mehmet Şimşek stated that the issues are limited to specific funds and do not represent a systemic risk to the broader market. During a ~~visit to imprisoned~~ series of visits in Bursa, including a meeting with the detained former Bursa Metropolitan Municipality Mayor Mustafa Bozbey, Özgür Özel reiterated his criticisms of the fund mismanagement. He emphasized the vulnerability of small-scale traders, noting that approximately half of the 7 million investors trade with 10,000 TL or less, and called for ~~greater~~ transparency regarding those who profited during the Tera Fund’s suspicious value increase.

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