Conotoxia and Cinkciarz.pl: Financial scandal continues – licence revoked, charges and bankruptcy

In the article of 23 January 2025 (you can find it here), we wrote about the financial situation of Cinkciarz.pl (Conotoxia sp. z o.o.) and how to pursue claims against the institution. As it turns out, further developments are extremely dynamic.

Conotoxia without a license for payment services – FSC decision after finding violations

On 2 October 2024, the Polish Financial Supervision Authority (KNF) decided to revoke the licence of Conotoxia sp. z o.o. to provide payment services as a national payment institution. The decision was based on serious breaches of obligations under the Payment Services Act, particularly concerning the protection of customer funds.

Due to the legislation, a national payment institution is obliged to adequately safeguard users’ funds – inter alia by not allowing them to be commingled with other assets of the institution. Conotoxia, took further legal action, against which it filed a complaint with the Provincial Administrative Court, which dismissed the complaint, indicating that:

„Conotoxia sp. z o.o. has ceased to provide the guarantee of prudent and stable management of its activities as a national payment institution, which is one of the prerequisites for the granting of this authorisation, hence its withdrawal was justified”.

Criminal proceedings – charges and precautionary measures

Conotoxia’s situation is developing rapidly. The very next day after the KNF’s decision, the Regional Prosecutor’s Office in Poznań initiated criminal proceedings. The case involves more than two thousand notifications, mainly from clients of the Cinkciarz.pl platform. These individuals still have not recovered their deposited funds.

In the course of the investigation, an allegation of complicity in the crime of fraud was made. The charge was brought against a person who acted as a member, and later as the President of the Management Board of Conotoxia sp. z o.o. The accusation concerns leading a number of persons to a disadvantageous disposition of property. This was allegedly done by misleading them as to the actual purpose of funds paid via the Cinkciarz.pl mobile application.

Significantly, the court decided to apply a preventive measure in the form of temporary arrest against him. A decision to present charges under Article 286 § 1 of the Criminal Code was also issued against the President of the Management Board of Cinkciarz.pl sp. z o.o. However, due to his absence from the country, no procedural actions were taken with him. The court did, however, decide to impose a security measure on his property.

Moving the dispute to the international arena

Conotoxia, Inc., headquartered in Chicago, did not cease its efforts. The company filed a criminal complaint with U.S. law enforcement agencies, alleging offences committed by employees of the KNF and Polish prosecution services.

The notice included allegations of:

• serious abuse of power,
• exceeding powers
• and intentional actions harming the international Conotoxia Holding group and its companies, including Cinkciarz.pl sp. z o.o., Conotoxia sp. z o.o., the brokerage house Conotoxia Ltd. and Conotoxia, Inc. itself.

According to the company, the losses from these actions amount to at least several billion zlotys. The conduct of the authorities’ employees allegedly led to significant economic damage, affecting both Polish and American entities.

Application for bankruptcy of the company Cinkciarz.pl

In addition, on March 10, 2025, an application for the declaration of bankruptcy of Cinkciarz.pl was filed with the District Court in Zielona Góra, registered under the reference ZG1E/GU/85/2025. It was submitted by the attorney of one of the injured persons.

On 28 March 2025, the court appointed an interim court supervisor over the company’s assets.

The supervisor’s role includes:

• protecting assets from being moved, hidden, or wasted,
• restricting the debtor’s ability to manage assets freely,
• monitoring the debtor’s ongoing operations,
• assessing the company’s financial status and the likelihood of satisfying creditors,
• and ensuring that assets retain their value and are properly secured for future insolvency proceedings.

What are the chances that a bankruptcy declaration will occur?

Bankruptcy proceedings are usually lengthy and complex, and this case appears no different.

The company’s management issued a statement indicating that: ’it regards the company’s bankruptcy application „as a deliberate act to the detriment of the company and as an attempt to hinder business operations”.

This suggests that the company will continue to oppose the declaration of bankruptcy.

However, it should be emphasised that a bankruptcy declaration would offer creditors an opportunity not only to investigate the company’s assets in detail, but also to pursue claims directly against the company’s management.

Recommendations for affected customers

Cinkciarz.pl’s customers should gather and secure all documentation of transactions and correspondence with the company as soon as possible, which will certainly make it easier to pursue claims.

We also recommend contacting our debt collection team, which is closely monitoring the Conotoxia situation. We will advise on the appropriate steps to take in each individual case. Taking swift legal action increases the chances of recovering lost funds.