Conotoxia Holding's subsidiary Cinkciarz.pl is reportedly urging customers to fulfill payment obligations for currency exchange transactions despite the company's inability to process these transactions due to prosecutor-ordered account freezes.

Currency Exchange Giant Cinkciarz.pl Demands Payments

The currency exchange service, which has operated for over 14 years, claims the account blockages have caused "tremendous financial losses" for both the company and its clients. In a statement released today (Thursday), Cinkciarz.pl encouraged customers to file complaints with Poland's Financial Supervisory Authority (KNF) and the prosecutor's office, which it blames for the situation.

"The blockage of accounts and funds made it impossible to execute transactions, causing enormous damage to both the company and its customers," the company said in its statement. "Users are now forced to exchange currencies at much higher rates in banks and other institutions."

However, some customers report receiving payment reminders from Cinkciarz.pl, with the company warning of potential liability for damages according to Article 471 of the Polish Civil Code if payments aren't completed.

The Exchange Didn’t Happen, but Cinkciarz.pl Wants the Money

According to reports from Bankier.pl and Facebook group members "Scammed by Cinkciarz.pl", customers attempting to exchange currency are seeing their transactions blocked by banks due to actions taken by the prosecutor's office. As a result, the funds are returned to their accounts.

However, Cinkciarz.pl is allegedly still demanding payment, sending reminders under the subject line "Send transfer confirmation to this email."

The exchange platform expects customers to settle their obligations, arguing that the transaction was initiated and approved. This has led to situations where Cinkciarz.pl is requesting payment for an exchange that never actually took place.

|The blocking of funds by banks at the request of the prosecutor's office is not a result of our actions but rather a decision made by state authorities, which prevents clients from executing their agreements,” Cinkciarz.pl explained in a statement. “In such cases, we expect clients to settle their obligations.”

“Unfair Market Practice”

Legal experts, however, question the validity of these demands. Attorney Paweł Gugała from SG Legal characterized the practice as potentially misleading.

"The client is not responsible for the fact that Cinkciarz.pl has a blocked account and cannot perform the currency conversion service," Gugała explained in an interview with Bankier.pl. "This type of action constitutes, in my opinion, an unfair market practice."

The company is preparing court proceedings in Zielona Góra after filing a complaint with prosecutors in Poznań. Cinkciarz.pl is also drafting motions to change what it calls "disproportionate" security measures that are destabilizing operations.

Losses and Alleged Bankruptcy Claim

Financial reports indicate Conotoxia Holding, Cinkciarz.pl's parent company, has not posted profits for at least eight years. By the end of 2023, according to Bankier.pl, the holding company had accumulated net losses of 191 million zlotys (approximately $48 million) and had outstanding loans totaling 130 million zlotys (about $32.5 million).

In January, a customer reportedly filed for bankruptcy proceedings against Cinkciarz.pl in an attempt to recover €50,000, but the case was dropped after the claimant failed to submit required documentation and pay a required deposit.

All of Cinkciarz.pl’s current problems began in October, when the KNF revoked the company’s payment license. At the same time, the prosecutor’s office also launched an investigation into the fintech’s activities.

From Currency Exchange to Toilet Paper

The company has been unable to process customer withdrawals since October 2024 and has engaged in public disputes with regulators, including a controversial announcement that it would produce toilet paper branded with "KNF" - which the company claimed stood for "I Love Finance the Most" in Polish.

Cinkciarz.pl maintains that banks, regulators, and law enforcement are responsible for its current situation, while continuing to insist that customers should fulfill their payment obligations for transactions that cannot be completed.

The company also suggested last week that the prosecutor’s office had launched an investigation into the KNF at its request. However, information obtained directly from the prosecutor’s office by Finance Magnates indicated that the request for an investigation had been rejected.