In Poland, a former board member of a well-known online currency exchange has been ordered to be detained for three months as part of an expanding fraud investigation. This investigation has also involved the company’s president. The detention order was approved by the Regional Court in Poznań after the individual was arrested by the Central Bureau of Investigation and the Central Bureau for Combating Cybercrime, with police assistance. Despite this order, he remains outside the country, meaning that no immediate detention could take place.
The accused individual, along with the company’s president, faces serious charges that could result in lengthy prison sentences, potentially up to 25 years if convicted. The allegations center around a fraudulent scheme that reportedly misled customers, leading to financial losses exceeding 49 million Polish złoty, which is approximately $12 million. The investigation suggests that the individual deceived clients concerning critical elements of contracts made via the company’s mobile application. This included misrepresentations about where the victims’ funds were directed after being collected through online currency exchanges.
Evidence gathered in the investigation indicates that the diverted funds were used to support the operational activities of companies associated with the Conotoxia Holding Capital Group, rather than for their intended purposes related to currency exchange services. During questioning, the suspended board member maintained his innocence and provided a defense statement to the prosecutors.
A court document justifying the detention took note of the substantial evidence suggesting the individual’s involvement in the alleged fraud. Until very recently, he was recorded as a board member of the company, but current records classify him as a former member, reflecting his recent departure from the position.
In parallel to the board member’s situation, the company’s president also faces similar fraud charges and is currently abroad. As a result of his absence, no immediate actions have yet taken place against him. Both individuals are under significant scrutiny and could face extensive legal consequences if the allegations are proven true.
This investigation is occurring in the wake of actions taken by the Polish Financial Supervision Authority to revoke a payment services license held by a company linked to the exchange. Customers had raised concerns regarding delays in transactions and exchanges prior to the revocation in October. By January, around 1,200 customers reported their dissatisfaction to the prosecutor’s office, seeking answers about their funds.
Authorities have already taken steps to freeze bank accounts associated with the company, highlighting the seriousness of the allegations and the financial misconduct claims. The regional prosecutor’s office has characterized the case as evolving, suggesting there could be further developments and actions as the investigation continues to unfold. The implications of the case could extend beyond the individual suspects, potentially affecting many customers who have placed their trust in the financial services provided.