Türkiye Liquidates 131 Investment Funds Amid Market Manipulation Crisis

The Capital Markets Board of Türkiye is managing a financial crisis involving 131 investment funds managed by seven portfolio management companies. The turmoil stems from alleged stock market manipulation designed to artificially inflate share prices to attract retail investors, a scheme that impacted 455,758 unique investors.

On September 17, the regulator ordered the liquidation of the affected funds. To prevent further losses and allow assets to be sold under more favorable conditions, the board later extended the liquidation window from three to six months. The crisis triggered a sharp sell-off on Borsa Istanbul, causing the BIST 100 index to plunge more than 7.5 percent at one point.

In response to the collapse, the Government of Türkiye launched a criminal investigation that has led to the arrest of dozens of suspects, including high-ranking fund management executives. Authorities have also frozen assets and imposed travel restrictions on those involved in the investigation.