The legal operation targeted at Turkey’s capital markets in response to the “Ponzi-style” funds scandal rapidly expanded between September 19 and September 21.

Moves evolved from isolated fund redemption delays to a wide-scope crackdown amid multi-billion-lira liquidity shortfalls, frozen corporate assets and the detention of executives. The justice ministry has broadened enforcement actions to multiple investment firms and publicly listed entities.

Following the initial detentions executed on September 17, with Tera Holding (Istanbul/TEHOL) deputy general manager Ibrahim Bekci and Destek Finans (Istanbul/DSTKF) chairman Altunc Kumova among those detained, a second wave of detentions was carried out on September 19. It targeted Pusula Holding chairman Serdar Turhan and TEHOL chairman Emre Tezmen, along with TEHOL board members Alper Ozturk, Emre Alkin and Kerem Alkin.

Local media reports suggested that a court had ordered the formal arrest of Kumova pending trial.

On September 21, justice minister Akin Gurlek announced another wave of detentions – 15 individuals allegedly connected to suspicious trading activity involving shares of Katilimevim (Istanbul/KTLEV) were taken into custody. Prosecutors launched formal legal proceedings against 25 suspects, with 10 remaining at large.

TEHOL board members Bulent Uygun and Abdulkadir Ozkan were also detained. Insurance company Doga Sigorta’s chairman, Nihat Kirmizi, was also taken into custody. Doga Sigorta is among the companies that have lodged applications for an initial public offering (IPO).

On September 14, Pusula Portfoy chairman Muhammed Yariz (@MuhammedYarz233) became the first suspect to be formally arrested.

Ufuk Yatirim emerges as target

Authorities have, meanwhile, imposed widespread transaction freezes on financial assets held by executives and entities associated with Pusula Finans Holding, Pusula Yatirim Menkul Degerler, Tera Yatirim Menkul Değerler (Istanbul/TERA), Tera Portfoy, Hedef Holding (Istanbul/HEDEF), Hedef Portfoy, Bulls Yatirim Menkul Degerler, Bulls Portfoy and Ufuk Yatirim Yonetim ve Gayrimenkul.

Ufuk Yatirim emerged as a new target in the operation, but the other companies had already been targeted on September 17.

Redemption requests

Tera Portfoy on September 20 said that investor redemption requests escalated rapidly into an unprecedented aggregated exit demand of approximately Turkish lira (TRY) 300bn ($6bn).

Hedef Portfoy on September 21 said that its 13 funds facing liquidation represented approximately TRY 31bn in total assets as of September 18 with TRY 30bn held in liquid assets.

Authorities along with appointed custodians Isbank (Istanbul/ISCTR) and Ziraat Bank continue to audit asset distribution, unfreeze clearable transactions and process outstanding redemption obligations under capital markets board SPK’s oversight.

Shares connected to Tera Group, including TERA, TRHOL, TEHOL, PRZMA, MANAS, PEKGY and GIPTA, on September 21 remained locked at the bottom of the daily price limits for the third consecutive trading day.

The Pasifik Holding (PAHOL) share price broke below one lira. The company held an IPO in November 2025, selling its shares at TRY 1.50.

Portfolio outflows?

Amid the fallout, calculations by @e507 suggested a decline of around $5bn in the central bank’s net FX position on September 17 and a decrease of around $2bn on September 18, indicating portfolio outflows. Yet no major problem is visible.

The volatility on the equities market and the pressures felt in domestic bonds are all manageable as the central bank can create lira on an infinite basis. However, any contagion spreading into FX demand would amount to a real headache for the government.