Turkey froze assets tied to executives at several investment firms, expanding an investigation into a fund-industry crisis that has triggered redemption failures, arrests, and a sharp stock selloff. The measures cover executives linked to firms including Tera Yatirim Menkul Degerler AS, Pusula Finans Holding AS, Hedef Holding, and Bulls Portföy Yönetimi, Justice Minister Akin Gurlek said in a post on X. Authorities also moved to restrict asset transfers involving board members, signatories, and some of their relatives without prosecutors' approval.

The benchmark Borsa Istanbul 100 Index fell 2.6% at 10:09 a.m. Istanbul time as the crisis deepened. The crackdown follows earlier redemption failures that have shaken confidence in Turkey's fund management sector. Prosecutors are investigating potential fraud and mismanagement across multiple firms, with the asset freezes aimed at preserving recoverable funds for investors.

The move signals an escalation in regulatory response to the unfolding financial turmoil.