A Massive $18 Billion Scandal Has Erupted In Turkey

• 11.10.2026, 18:44

A pyramid scheme has been linked to the Erdogan regime

Nearly half a million investors lost about $18 billion in one of the biggest financial scandals in Turkey’s history. This story has exposed the close ties between government officials, financial regulators, and the private sector, and has raised questions about the role of the administration of Turkish President Recep Tayyip Erdoğan, writes The National Interest.

The brokerage firm Tera Yatirim found itself at the center of the scandal. Following the publication of an investigation by Bloomberg, it became known that its stock had skyrocketed by 40,000%. Subsequently, investors suffered massive losses, and the incident was compared to a Ponzi scheme.

The authorities’ inaction caused particular outrage. As early as November 2025, Finance Minister Mehmet Şimşek acknowledged that market manipulation was taking place. However, regulators did not intervene until August 2026, following a warning from the international company MSCI.

The delay is attributed to systemic corruption and the concentration of power in Erdoğan’s hands. Positions in financial agencies are increasingly going to people loyal to the government and their relatives. Among those implicated in the scandal were representatives of the ruling Justice and Development Party.
“The main question is not whether the president knew what was happening, but why he decided not to intervene,” the authors emphasize.

Following a corruption investigation in 2013, Erdoğan rejected the allegations and began restructuring the oversight system, and after the 2016 coup attempt, thousands of judges and prosecutors were removed from their posts.

According to analysts, stricter rules for investment funds alone are not enough. Without independent courts, effective parliamentary oversight, and the ability to hold the country’s leaders accountable, new scandals are inevitable.