Borsa Istanbul Chief Executive Officer Korkmaz Ergun has been detained by authorities as part of a widening investigation into an investment fund crisis in Turkey, according to state-run media reports published on Saturday.
Ergun faces allegations that include accepting bribes and holding membership in a criminal organization, state-run Anadolu Agency reported. In addition to his leadership role at the nation’s primary stock exchange, Ergun serves as the deputy chairman of Turkey’s Settlement and Custody Bank, widely known as Takasbank.
The detention marks a significant escalation in a sweeping government probe examining alleged market manipulation involving various investment funds and equities. The inquiry has also targeted Ibrahim Omer Gonul, the former chairman of the Capital Markets Board, who is currently under investigation as a suspect.
The underlying financial crisis initially surfaced in September, steadily drawing in several prominent figures across Turkey’s financial sector. The pressure intensified further when authorities detained 15 additional suspects last week, a group that included Taha Cakmak, chief executive of the state-run insurer Turkiye Sigorta. Cakmak subsequently submitted his resignation following the action.
The turbulence within the market has also been accompanied by severe personal tragedies. Earlier in October, Ali Emre Balli, who served as chairman of the distressed-asset manager Adil Varlik Yonetim AS, was found dead.
