Tera Group, an investment bank that once called itself the "Turkish Goldman Sachs," and its asset management arm, Tera Portfoy, have been classified by the Turkish Ministry of Justice as operating a "Ponzi-like scheme." Approximately $14 billion (68 billion lira) in funds have been forced into liquidation, and one executive has been arrested. Previously, its flagship fund had reported returns exceeding 17,000%, and related stocks had surged by as much as 2,000%. In August this year, Turkish regulators tightened rules for funds heavily invested in illiquid stocks, triggering a run on investors that left Tera's funds unable to meet redemption requests. The collapse quickly spread through the Turkish financial system, with one in six companies on the Istanbul All Share Index hitting their daily limit down last Friday. Tera Yatirim's stock plummeted 27% in three days, and the broader market recorded its worst weekly performance in over a year. Turkish Finance Minister Mehmet Şimşek has stepped in to reassure the market, stating that the problematic areas have been isolated and there is no systemic risk, though approximately 350,000 investors are still affected.