On November 3rd, the Turkish government arrested Korkmaz Ergun, the CEO of Istanbul Stock Exchange, on charges of bribery. This is part of an ongoing investigation related to the crisis involving Turkish investment funds.
Elgon was detained for questioning on October 31. A spokesman for the Istanbul Stock Exchange said that the exchange will issue a comment later.
According to a statement posted on the website of the Istanbul Stock Exchange, on November 1st, the exchange's board of directors actually removed Ergün from his position and appointed Vice CEO Atila Tureli as acting CEO.
The core of this investigation was suspected manipulation of investment funds and stock prices. In September this year, several investment funds collapsed, causing significant losses in the Turkish stock market, affecting nearly 500,000 investors. The Turkish Capital Markets Board subsequently ordered the liquidation of 131 funds, involving assets worth approximately 936.3 billion lira, impacting more than 450,000 investors. As a result of this impact, the BIST100 index fell by more than 20% within a month, entering a technical bear market.
subsequently, the government launched relevant investigations. Ergün is the highest-ranking official arrested in this investment fund investigation so far. The scope of the investigation has expanded from fund managers and listed companies to senior officials and political figures in Turkish financial institutions and regulatory authorities.
