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. Branch Closure Details

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.

This article was written by Damian Chmiel at www.financemagnates.com.BrokersRead More

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