A Chicago-based financial technology company has reported alleged criminal activities by employees of the Polish financial regulator and various local prosecutors. The company claims that these officials have misappropriated their authority and acted with the intent to adversely affect the international holding group, leading to estimated financial damages of at least several billion Polish zlotys.
Following the recent dismissal of a significant appeal in Poland, where a local administrative court upheld the regulator’s decision to revoke the company’s payment services license, the company opted to notify US law enforcement. The court’s ruling endorsed the regulator’s actions, stating that the company did not meet necessary requirements for maintaining its license and failed to comply with critical obligations concerning the safeguarding of client funds.
In response to this setback, the firm expressed intentions to pursue legal action targeting those deemed responsible for the damages and has plans to seek full reparation for the incurred losses. Furthermore, the company intends to present its case to EU supervisory bodies and other international regulators.
The ongoing conflict between the company and Polish regulators has escalated markedly. After the court’s ruling, the company condemned the judgment as indicative of a broader crisis within the Polish legal framework, claiming that their arguments were superficially addressed. They alleged procedural improprieties by the regulator, including the failure to notify them of evidence gathered against them and withholding the opportunity for rebuttal prior to the revocation of the license.
Plans are underway to appeal the decision in higher courts while also exploring legal solutions through both US and international avenues. Recently, the firm also announced its intention to file another complaint with the National Public Prosecutor’s Office against local prosecutors involved in the original case.
In parallel to these legal proceedings, there has been an uptick in customer grievances in Poland, with reports of around 1,200 individuals claiming to be victims and over 300 business accounts allegedly frozen. Despite the operational difficulties stemming from transfer blockages by banks, the firm reportedly continues to demand payments for transactions that could not be fulfilled.
In a uniquely provocative move, the company previously hinted at launching a product of toilet paper branded with the initials of the Polish regulator, signaling discontent and mockery toward the authorities involved, while asserting that the production would not need additional permissions.
As the situation develops, the firm is actively pursuing various legal strategies across different jurisdictions, including challenging regulatory actions and addressing customer complaints. The ongoing disputes highlight significant tensions between the fintech sector and regulatory frameworks in Poland, reflecting broader issues within the financial oversight landscape.