A Chicago-based subsidiary of a Polish fintech, recently alerted U.S. law enforcement about alleged misconduct by employees of the Polish financial regulator, KNF, and local prosecutor’s offices. The company contends that these officials misused their authority and took actions intentionally damaging to the broader international group, leading to estimated financial losses in the billions of Polish zlotys.
This notification follows an unfavorable outcome in Poland, where a court dismissed an appeal concerning the revocation of a payment services license by the KNF. The ruling concluded that the Polish regulator acted properly and that the fintech did not comply with necessary regulations or obligations regarding the safeguarding of client funds.
In its official communication to U.S. authorities, the company expressed an intent to pursue legal action against those deemed responsible for the purported damages and to seek full compensation for the losses sustained. The company is also set to engage European Union regulatory authorities and other international bodies in this matter.
Tensions between the fintech and Polish regulatory entities have escalated in recent times. Following the court’s decision, the fintech issued a stern critique of the ruling, labeling it indicative of issues within the Polish legal system and claiming that the court did not adequately address their concerns. A spokesperson expressed discontent with the bureaucratic management, suggesting that officials believe they can operate without legal accountability.
Plans are in motion for the fintech to appeal to the Polish Supreme Administrative Court while seeking resolutions on various fronts, including U.S. and international channels. Furthermore, the company has announced intentions to lodge another legal complaint against both the National Public Prosecutor’s Office and the Regional Public Prosecutor’s Office in Poznań, asserting that these authorities acted against the interests of their entire corporate group.
Simultaneously, the company faces rising customer dissatisfaction in Poland. Reports indicate over 1,200 alleged victims, coupled with numerous blocked business accounts. Despite being restricted from conducting currency exchanges due to bank directives halting fund transfers, the fintech continues to request payments from clients for transactions that could not be completed.
In a notable expression of defiance, the company previously announced plans to create a toilet paper product featuring the letters “KNF” as a mockery of the Polish regulator, suggesting that this initiative would not require any permits.
This ongoing dispute is complex and multi-faceted, with the fintech exploring various legal strategies across multiple jurisdictions. The broader group encompasses multiple business entities, each contributing to the narrative surrounding the firm’s current legal challenges and customer relations issues.