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Home.forex news reportCySEC-Regulated Conotoxia Closes Polish Branch, Cinkciarz.pl Under Prosecutor's Radar

CySEC-Regulated Conotoxia Closes Polish Branch, Cinkciarz.pl Under Prosecutor’s Radar

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One of the
companies within the Polish fintech group Cinkciarz.pl has announced the
closure of its Polish branch. Conotoxia Ltd., headquartered in Cyprus and
licensed by CySEC, provides retail investors with FX and CFD trading services.

This move
comes at a time when Cinkciarz.pl, an online currency exchange provider, has
temporarily suspended its operations. The company is currently under
investigation by Polish prosecutors, who are examining complaints from 1,200
fintech clients.

Conotoxia
Ltd., which provides FX/CFD trading services through invest.conotoxia.com, sent
an email to its clients last Friday announcing the closure of its Polish branch
and related changes to documentation, including service terms, complaint
handling policies, and KYC requirements.

“Pursuant
to clause 27.7 of the Terms and Conditions, a Client who does not accept the
amendments may, prior to their effective date, object and terminate the
Agreement with a notice period or with immediate effect,” the email
stated.

Following
the Polish branch closure, Conotoxia Ltd. clients will likely be served by the
central office in Cyprus, located at Chrysorroiatissis 11, 3032 Limassol. The
company has held a Cypriot regulator’s license for FX and CFD services since
September 2017.

Although
Conotoxia Ltd. operates independently from the Poland-registered Cinkciarz.pl
sp. z o.o. and Conotoxia sp. z o.o., the branch closure appears potentially
connected to the recent troubles of the Polish fintech , including the loss of
its payment license in October 2024.

Who’s Who in Conotoxia Holding?

Given the identical names of its subsidiaries, it can be confusing to determine which company is responsible for what. Below is a brief explanation of their respective operations:

  • Cinkciarz.pl Sp. z o.o. (Poland): Main currency
    exchange platform operating since 2010, offering online FX services and SWIFT
    transfers
  • Conotoxia Sp. z o.o. (Poland): Payment institution
    providing money transfers across Europe and multi-currency payment cards
  • Conotoxia Ltd. (Cyprus): CySEC-regulated broker offering
    FX and CFD trading services to European clients through invest.conotoxia.com
    platform
  • Conotoxia, Inc. (USA): Money transfer service provider
    licensed in multiple US states, facilitating transfers between US and Europe

Finance
Magnates
has
reached out to Conotoxia Ltd. for comment but has not received a response at
the time of publication.

Conotoxia Planned to Sue
11 Banks for $1.6 Billion

In recent
months, numerous press releases from Cinkciarz.pl and its parent company,
Conotoxia, indicated that the fintech believed it was being unfairly targeted
by banks, the media, and regulatory authorities. Consequently, the Polish
fintech announced plans to pursue legal action against 11 banks, seeking a
total of $1.6 billion in damages
.

Simultaneously,
the company intended to take legal action against the regulatory body while
also attempting to secure a banking license to maintain its operations. By
mid-November, Conotoxia reported that it had reimbursed 60% of its customers
following the loss of its license and projected that all outstanding debts
would be settled by the end of 2024.

However,
skepticism remains among affected clients. A Facebook group named
“Defrauded by Cinkciarz.pl,” which has nearly 9,000 members, features
numerous individuals claiming they have yet to recover their funds.

Prosecutors Investigate
Cinkciarz.pl Following 1,200 Customer Complaints

While
discussions about Conotoxia’s lawsuits have quieted, the Polish prosecutor’s
office has launched its own investigation into the company. Authorities have
frozen 328 of Conotoxia’s accounts as part of an ongoing probe
into allegations
of fraud and the misappropriation of customer funds. Preliminary findings
suggest that the frozen accounts may not contain enough money to cover all
customer claims.

Further
investigations revealed that Marcin Pióro, the company’s CEO, holds
approximately 492 bitcoins valued at 196 million zlotys ($50 million) on
personal storage devices, according to a report by Rzeczpospolita last
month.

One of the
companies within the Polish fintech group Cinkciarz.pl has announced the
closure of its Polish branch. Conotoxia Ltd., headquartered in Cyprus and
licensed by CySEC, provides retail investors with FX and CFD trading services.

This move
comes at a time when Cinkciarz.pl, an online currency exchange provider, has
temporarily suspended its operations. The company is currently under
investigation by Polish prosecutors, who are examining complaints from 1,200
fintech clients.

Conotoxia
Ltd., which provides FX/CFD trading services through invest.conotoxia.com, sent
an email to its clients last Friday announcing the closure of its Polish branch
and related changes to documentation, including service terms, complaint
handling policies, and KYC requirements.

“Pursuant
to clause 27.7 of the Terms and Conditions, a Client who does not accept the
amendments may, prior to their effective date, object and terminate the
Agreement with a notice period or with immediate effect,” the email
stated.

Following
the Polish branch closure, Conotoxia Ltd. clients will likely be served by the
central office in Cyprus, located at Chrysorroiatissis 11, 3032 Limassol. The
company has held a Cypriot regulator’s license for FX and CFD services since
September 2017.

Although
Conotoxia Ltd. operates independently from the Poland-registered Cinkciarz.pl
sp. z o.o. and Conotoxia sp. z o.o., the branch closure appears potentially
connected to the recent troubles of the Polish fintech , including the loss of
its payment license in October 2024.

Who’s Who in Conotoxia Holding?

Given the identical names of its subsidiaries, it can be confusing to determine which company is responsible for what. Below is a brief explanation of their respective operations:

  • Cinkciarz.pl Sp. z o.o. (Poland): Main currency
    exchange platform operating since 2010, offering online FX services and SWIFT
    transfers
  • Conotoxia Sp. z o.o. (Poland): Payment institution
    providing money transfers across Europe and multi-currency payment cards
  • Conotoxia Ltd. (Cyprus): CySEC-regulated broker offering
    FX and CFD trading services to European clients through invest.conotoxia.com
    platform
  • Conotoxia, Inc. (USA): Money transfer service provider
    licensed in multiple US states, facilitating transfers between US and Europe

Finance
Magnates
has
reached out to Conotoxia Ltd. for comment but has not received a response at
the time of publication.

Conotoxia Planned to Sue
11 Banks for $1.6 Billion

In recent
months, numerous press releases from Cinkciarz.pl and its parent company,
Conotoxia, indicated that the fintech believed it was being unfairly targeted
by banks, the media, and regulatory authorities. Consequently, the Polish
fintech announced plans to pursue legal action against 11 banks, seeking a
total of $1.6 billion in damages
.

Simultaneously,
the company intended to take legal action against the regulatory body while
also attempting to secure a banking license to maintain its operations. By
mid-November, Conotoxia reported that it had reimbursed 60% of its customers
following the loss of its license and projected that all outstanding debts
would be settled by the end of 2024.

However,
skepticism remains among affected clients. A Facebook group named
“Defrauded by Cinkciarz.pl,” which has nearly 9,000 members, features
numerous individuals claiming they have yet to recover their funds.

Prosecutors Investigate
Cinkciarz.pl Following 1,200 Customer Complaints

While
discussions about Conotoxia’s lawsuits have quieted, the Polish prosecutor’s
office has launched its own investigation into the company. Authorities have
frozen 328 of Conotoxia’s accounts as part of an ongoing probe
into allegations
of fraud and the misappropriation of customer funds. Preliminary findings
suggest that the frozen accounts may not contain enough money to cover all
customer claims.

Further
investigations revealed that Marcin Pióro, the company’s CEO, holds
approximately 492 bitcoins valued at 196 million zlotys ($50 million) on
personal storage devices, according to a report by Rzeczpospolita last
month.



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