General Director of the Istanbul Stock Exchange (Borsa Istanbul) Korkmaz Enes Ergun was detained as part of an investigation into alleged violations on the stock market, according to authorities reported on October 31. The Turkish prosecutor’s office indicated Ergun is suspected of “participating in an organization created for the purpose of committing crimes” and bribery. Ergun has served at the exchange since the start of his professional career and assumed leadership in March 2021.
The investigation followed a severe September crisis in Turkey’s stock market, during which trading was suspended due to plummeting securities values across multiple investment funds. By October 21, the Turkish Ministry of Justice stated over 400 defendants had been processed in the matter, with arrests rising to 120 by October 28. Authorities also froze bank accounts and seized assets worth 351 individuals and 102 legal entities.
On September 17, the Turkish Capital Markets Council ordered the liquidation of 131 investment funds managed by seven companies, impacting 455,000 investors. While a special mechanism for client payments was established, officials confirmed no budget funds would be allocated for compensation.
