A Polish court has authorized the three-month detention of a former board member of an online currency exchange, as part of an expanding fraud investigation that has also involved the company’s president. Presently, due to his location outside Poland, this detention order could not be enforced. The prosecution has indicated that both individuals involved could face up to 25 years imprisonment if found guilty of the alleged crimes.
The case gained traction on March 12, 2025, when the Regional Court in Poznań upheld a request from the prosecutor’s office for temporary arrest following the apprehension of the suspect by officers from specialized investigation units. This individual is accused of engaging in fraudulent activities that misled numerous clients, leading to financial losses exceeding 49 million Polish złoty, which translates to around $12 million. Specific accusations allege that customers were misled about critical components of contracts executed through the company’s mobile application, along with false representations regarding the use of funds that were meant for online currency exchanges and payment services.
According to the investigation details, it is claimed that the misappropriated funds were not utilized as intended, but rather diverted to support activities of other entities within a capital group associated with the company. The prosecutor’s office stated that the suspect, during questioning, denied any wrongdoing and put forth a defense strategy.
The court’s reasoning for the detention order was rooted in the substantial evidence collected by the prosecution, which suggested a high probability that the alleged crimes were indeed committed. Until recently, the accused held a position on the board of the company, a fact noted in communications from law enforcement, though references to his name have since been removed from the company’s official website.
While legal actions were initiated against the former board member, a parallel investigation also targets the company’s president, who has been named in similar fraud charges but remains outside the country, thus complicating any immediate legal procedures against him. He, too, faces severe potential penalties.
This investigation is set against a backdrop of regulatory scrutiny as the Polish Financial Supervision Authority recently revoked the payment services license of a company linked with the online exchange. This action was taken after numerous complaints were submitted by customers regarding persistent delays in currency transactions and transfers. Approximately 1,200 complaints had been logged by early 2025, indicating widespread dissatisfaction among clients.
In relation to this financial scrutiny, law enforcement agencies had previously frozen 328 bank accounts affiliated with the company as part of their investigation. The local prosecutor’s office has indicated that the case is ongoing, hinting at the possibility of further developments as inquiries continue.
This situation encapsulates a significant case within the fintech sector in Poland, demonstrating both the potential pitfalls of regulatory compliance and the ramifications of alleged fraudulent activities in the financial services industry. The combination of customer complaints, regulatory intervention, and ensuing legal actions underlines the ongoing challenges faced by financial institutions and their fiduciary responsibilities to consumers. The scope of the investigation has raised questions about the operational transparency of online currency exchanges and the broader implications for the sector as it navigates regulatory landscapes and consumer trust. The aftermath of these proceedings could have lasting effects, not only on the individuals involved but also on the reputation and operation of fintech entities in the region.