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.
This article was written by Damian Chmiel at www.financemagnates.com.
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