A recent development in Poland has led to the detention of a former board member associated with an online currency exchange platform, as part of an extensive fraud investigation. The individual in question is currently outside the country, which has delayed the execution of the court’s temporary detention order. Authorities have indicated that the allegations against him, along with another individual linked to the business, could result in prison sentences of up to 25 years if they are found guilty.
The Poznań Regional Court authorized the prosecutor’s request for a three-month arrest on March 12, 2025, following the arrest of the former board member by officials from both the Central Bureau of Investigation and the Central Bureau for Combating Cybercrime, in collaboration with the police. The prosecutors are alleging that the accused participated in a fraudulent scheme that deceived many individuals, leading to estimated financial losses exceeding 49 million Polish złoty, equivalent to around $12 million.
According to the information presented by the prosecutor’s office, the suspect is accused of misleading customers regarding important elements of contracts executed via a mobile application linked to the exchange platform. This includes misrepresentation about where the funds collected through online transactions were directed. Allegations suggest that these funds were misappropriated to support the operations of various companies within a specific capital group, rather than being utilized for their intended purposes.
After being questioned, the suspect reportedly denied the charges and provided his defense strategy to the prosecutor. The court, in its rationale for the detention order, concurred with the prosecutor’s stance, indicating that the evidence amassed pointed towards a significant likelihood of guilt.
Until recently, he held a decision-making role at the platform, but current references from law enforcement indicate that he is now categorized as a former member. His online profiles suggest a long history of service within the company, which is based in Zielona Góra, Poland.
In addition to the former board member, charges have also been brought against the firm’s President, who remains outside of Poland. The prosecutor’s office has stated that although fraud charges have been formally announced, no further legal actions have been undertaken against the president due to his current location.
The ongoing investigation has surfaced after the Polish Financial Supervision Authority took decisive action by revoking the payment services license of a company tied to the exchange platform last October. This decision followed a series of customer complaints concerning significant delays in currency exchange transactions and money transfers. Reports indicate that around 1,200 customers associated with this exchange platform lodged complaints with the prosecutor’s office, emphasizing their dissatisfaction with the way the company handled their transactions.
In light of the unfolding situation, prosecutors have blocked a substantial number of bank accounts linked to the firm as part of their efforts to safeguard the interests of the affected customers. The Poznań Regional Prosecutor’s Office has characterized the case as “developing,” indicating that the investigation could yield further legal actions in the future.
This case highlights the challenges and risks associated with online currency exchanges, particularly as regulatory agencies are increasingly vigilant regarding compliance with financial laws and consumer protection. The allegations of misconduct are serious and spotlight the importance of responsible practices within the financial technology sector. As this investigation proceeds, significant developments may emerge, potentially impacting stakeholders within the broader financial community.