Conotoxia, Inc., the Chicago-based subsidiary of the polish fintech giant Cinkciarz.pl, has notified US law enforcement agencies about alleged criminal offenses committed by employees of the Polish financial regulator KNF and various local prosecutor's offices. The company claims these officials abused their power and deliberately acted to harm the international Conotoxia Holding group, causing estimated losses of “at least several billion Polish zlotys.”

Conotoxia Files Complaint Against Polish Regulators in the US

The US company's move comes after a significant setback in Poland, where the Warsaw Administrative Court recently dismissed an appeal by Conotoxia sp. z o.o. against the KNF's October 2024 decision to revoke its payment services license.

The court ruled that the Polish regulator had conducted its proceedings correctly, finding that Conotoxia had failed to meet essential requirements for holding a payment services license and did not fulfill obligations related to protecting client funds.

In its notification to US authorities, Conotoxia, Inc. stated it "intends to take decisive legal action to punish all those responsible for the damage caused and seek full compensation for the losses incurred." The company also plans to present its case to European Union supervisory authorities and international regulatory institutions.

Escalating Regulatory Battle

The dispute between Conotoxia (Cinkciarz.pl) and Polish regulators has intensified significantly in recent months. Following the Warsaw court's decision, Conotoxia harshly criticized the ruling, describing it as confirmation of "a deep crisis of the legal system in Poland" and accusing the court of only superficially addressing their arguments.

"We are again faced with bureaucrats who feel they can act above the law with impunity and beyond real state control," a company spokesperson stated after the court ruling. The fintech firm has alleged that KNF failed to follow proper procedures, including not notifying the company of collected evidence and denying them the opportunity to respond before issuing its decision.

The company has announced plans to appeal to the Polish Supreme Administrative Court, while simultaneously pursuing remedies through US and international channels.

Moreover, yesterday (Monday), the company announced that it will "file another legal complaint with the National Public Prosecutor's Office against the Regional Public Prosecutor's Office in Poznań" and the KNF.

“We accuse these authorities of knowingly acting to the detriment of the entire capital group, including the US-based Conotoxia, Inc.,” the company announced.

Investigation in Poland

Meanwhile, the company faces growing customer complaints in Poland, with reports mentioning approximately 1,200 alleged victims and 328 blocked business accounts. Despite being unable to execute currency exchanges due to banks blocking transfers, Conotoxia reportedly continues to demand payment from customers for failed transactions.

In a particularly unusual development, the company previously announced plans to produce toilet paper adorned with the letters "KNF" as a thinly veiled mockery of the Polish regulator, claiming this business wouldn't require additional permits.

The case continues to evolve as Conotoxia seems to pursue multiple legal avenues across different jurisdictions.

Conotoxia Holding Group consist of several separate entities, including Cinkciarz.pl sp. z o.o., Conotoxia sp. z o.o., Conotoxia Ltd. brokerage house (regulated by CySEC) and Conotoxia, Inc.