Turkey’s $17bn fund scandal becomes a political crisis for Erdogan

Turkish President Recep Tayyip Erdogan vowed to hold accountable those responsible for alleged Ponzi-like investment fund schemes estimated at $17 billion. The liquidation of 130 investment funds, exposing connections to Turkey's ruling elite, has become a major political crisis for Erdogan's administration. The scandal has affected half a million people and triggered a major stock market sell-off.

Notably, former deputy head of the ruling Justice and Development Party (AKP) Fatma Betul Sayan Kaya resigned after being accused of making significant profits from share sales before the crisis. Tera Group and Pusula, accused of involvement, deny wrongdoing. Erdogan pledged to pursue those responsible for market manipulation and fraudulent trading schemes, threatening legal action against anyone infringing on the nation's rights, assets, or legal interests.