Istanbul prosecutors probe illegal sharing of confidential fund scandal documents

Istanbul prosecutors have launched an investigation into unidentified persons who posted confidential documents from the probe into Turkey’s $18 billion investment-fund crisis on digital platforms. The Istanbul Chief Public Prosecutor’s Office said the disclosures breached Article 285 of the Turkish Penal Code, which can result in one to three years’ imprisonment or a fine. The fund scandal erupted in mid-September when a wave of redemption requests triggered a market sell-off and prompted the Capital Markets Board to order the liquidation of 131 funds managed by seven firms, affecting about 455,758 investors and holding assets worth more than 890 billion lira.

The move comes after two journalists were jailed and two placed under house arrest for coverage linking the ruling AKP to the crisis, and after a court blocked articles questioning possible political ties. Prosecutors have sent formal requests for information to the SPK, Borsa Istanbul, the Central Securities Depository, the Banks Association and other institutions. The investigation underscores the government’s tightening grip on reporting about the scandal, which has already seen dozens of arrests and heightened pressure on the AKP.