Turkey Liquidates 131 Funds, Detains 45 in Market Manipulation Probe

Turkey's Capital Markets Board (SPK) ordered the liquidation of 131 investment funds managed by seven portfolio companies on September 17, affecting 455,758 investors and assets exceeding $18 billion. The move followed August 28 regulations targeting excessive concentration in low-float stocks, which triggered liquidity crises when redemption requests surged.

Justice Minister Yilmaz Tunc announced criminal proceedings against 76 suspects, with 45 detained and assets frozen for fund owners, executives, and their relatives. Prosecutors are investigating organized crime, fraud, and market manipulation charges.

“The rumors are baseless and damage economic stability.”

Finance Minister Mehmet Simsek publicly denied resignation rumors yesterday, calling them "baseless" and damaging to economic stability. The crisis has evolved into a broader confidence test for Turkish capital markets.

According to SPK observations from late 2025, funds accumulated large positions in thinly traded shares, inflating prices and paper returns to attract new investor money. This self-reinforcing cycle collapsed when new rules forced diversification and redemptions overwhelmed liquidity.