Turkish authorities launch interim payouts and expand arrests as fund liquidations progress

The Capital Markets Board approved interim payments of up to 1 million Turkish lira for each investor in the 131 funds placed under liquidation, with the amount capped and later offset against final distributions. Treasury and Finance Minister Mehmet Şimşek said the swift intervention has a limited impact and has averted a systemic crisis. A Fund Coordination Board, created in response to the scandal, is chaired by Vice President Cevdet Yılmaz, while the State Supervisory Council is conducting a parallel audit of recent fund transactions.

Prosecutors ordered the detention of 34 additional suspects, bringing the total of individuals subject to legal measures to 217, and banks have been tasked with managing the asset sales and distributions. The crisis, linked to alleged Ponzi‑style operations, continues to affect roughly half a million investors and has pressured market confidence.