Turkish stock market manipulation scandal; 45 suspects arrested

Turkish stock market manipulation scandal; 45 suspects arrested

Due to severe inflation in Turkey, many people in the country are investing their savings in the stock market. Their hope is to protect their money from devaluation and increase its value. But now a stock market manipulation scandal has shaken Turkey; an event that could hit retail investors the hardest.

Turkish Minister of Justice Akin Gürlek announced on the social network X that the assets of 42 natural persons and 46 legal entities were blocked as part of the investigation into capital market violations.

Previously, at least 45 people were arrested, including investment company managers. According to Gürlek, the Istanbul Chief Public Prosecutor's Office opened an investigation, which includes charges of fraud, violation of the Capital Market Law, and establishment of a criminal organization.

According to Turkish media reports, Erkan Kilimci, former deputy governor of the country's central bank, is also among those arrested. The crisis related to investment funds has shaken Turkey since mid-September. According to the state-run Anadolu Agency, the Turkish Capital Markets Board (SPK) liquidated 131 investment funds.

According to media reports, assets worth 826 billion Turkish liras, equivalent to more than 17 million dollars, were held in these funds. According to Anadolu, more than 455,000 investors were affected by the aftermath of this event.