Conotoxia,
Inc., the Chicago-based subsidiary of the polish fintech giant Cinkciarz.pl,
has notified US law enforcement agencies about alleged criminal offenses
committed by employees of the Polish financial regulator KNF and various local
prosecutor’s offices. The company claims these officials abused their power and
deliberately acted to harm the international Conotoxia Holding group, causing
estimated losses of “at least several billion Polish zlotys.”
Conotoxia Files Complaint
Against Polish Regulators in the US
The US
company’s move comes after a significant setback in Poland, where the Warsaw
Administrative Court recently dismissed an appeal by Conotoxia sp. z o.o.
against the KNF’s October 2024 decision to revoke its payment services license.
The court
ruled that the Polish regulator had conducted its proceedings correctly,
finding that Conotoxia had failed to meet essential requirements for holding a
payment services license and did not fulfill obligations related to protecting
client funds.
In its
notification to US authorities, Conotoxia, Inc. stated it “intends to take
decisive legal action to punish all those responsible for the damage caused and
seek full compensation for the losses incurred.” The company also plans to
present its case to European Union supervisory authorities and international
regulatory institutions.
Escalating Regulatory
Battle
The dispute
between Conotoxia (Cinkciarz.pl) and Polish regulators has intensified
significantly in recent months. Following the Warsaw court’s decision,
Conotoxia harshly criticized the ruling, describing it as confirmation of
“a deep crisis of the legal system in Poland” and accusing the court
of only superficially addressing their arguments.
“We
are again faced with bureaucrats who feel they can act above the law with
impunity and beyond real state control,” a company spokesperson stated
after the court ruling. The fintech firm has alleged that KNF failed to follow
proper procedures, including not notifying the company of collected evidence
and denying them the opportunity to respond before issuing its decision.
The company
has announced plans to appeal to the Polish Supreme Administrative Court, while
simultaneously pursuing remedies through US and international channels.
Moreover,
yesterday (Monday), the company announced that it will “file another legal
complaint with the National Public Prosecutor’s Office against the Regional
Public Prosecutor’s Office in Poznań” and the KNF.
“We accuse
these authorities of knowingly acting to the detriment of the entire capital
group, including the US-based Conotoxia, Inc.,” the company announced.
Investigation in Poland
Meanwhile,
the company faces growing customer complaints in Poland, with reports
mentioning approximately 1,200 alleged victims and 328 blocked business
accounts. Despite being unable to execute currency exchanges due to banks
blocking transfers, Conotoxia reportedly continues to demand payment from
customers for failed transactions.
In a
particularly unusual development, the company previously announced plans to
produce toilet paper adorned with the letters “KNF” as a thinly
veiled mockery of the Polish regulator, claiming this business wouldn’t require
additional permits.
The case
continues to evolve as Conotoxia seems to pursue multiple legal avenues across
different jurisdictions.
Conotoxia Holding
Group consist of several separate entities, including Cinkciarz.pl sp. z o.o.,
Conotoxia sp. z o.o., Conotoxia Ltd. brokerage house (regulated by CySEC) and
Conotoxia, Inc.
This article was written by Damian Chmiel at www.financemagnates.com.
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