The Polish
financial technology company recently stripped of its payment services license,
Conotoxia Sp. z o.o. (part of Cinkciarz.pl), announced today (Tuesday) a settlement
plan promising full refunds with interest to affected customers, as it works to
resolve the fallout from regulatory challenges.

Conotoxia Pledges Full
Customer Refunds by Year-End, Currently 60%

The company
has returned approximately 60% of customer deposits and aims to complete all
remaining refunds by December 31, 2024, the deadline set by the Polish
Financial Supervision Authority (KNF).

“We
fully understand customers’ concerns regarding the return of funds for their
currency exchange transactions,” stated Conotoxia in its
announcement. “We process refund transfers on a daily basis.”

The company
emphasized that signing the settlement agreement is optional and primarily
targets customers seeking additional security for their repayments. “We believe
this arrangement will save time, avoid unnecessary legal fees and minimise the
stress associated with the repayment process,” the company added.

The settlement
proposal, which will be available to customers through their online profiles
next week, guarantees complete reimbursement of entrusted funds plus statutory
interest for the waiting period.

This
development comes in the wake of KNF’s
October 2 decision to revoke Conotoxia’s payment services license, which
sparked concerns among the company’s substantial customer base. The settlement
initiative appears to be part of a broader strategy to maintain customer
confidence and ensure an orderly resolution of outstanding obligations.

“We
sincerely apologize for the delays and guarantee that we are committed to
resolving the problem,” the company concluded.

Cinkciarz.pl Takes KNF to
Court

Also this
week, Cinkciarz.pl has initiated legal proceedings against KNF, following the
revocation of its operating license. The fintech contends that the decision,
rather than safeguarding customer interests, could undermine them. The case
centers on the KNF’s recent objection to Conotoxia’s use of bank accounts owned
by its agent, Cinkciarz.pl, to manage customer funds—a practice the company
claims the regulator had tolerated since 2017.

The dispute
between Conotoxia and the KNF has been escalating for over a month. The fintech
has accused the KNF of “violating the law” and jeopardizing its
business operations. Meanwhile, the regulator has issued a negative
recommendation concerning Conotoxia’s efforts to obtain a European banking
license, which the company deems critical for sustaining its activities.

Conotoxia also
wants to launch lawsuits against nearly all major banks in Poland, alleging
“conspiracy” to obstruct its operations. The legal claims could
target 11 entities, with damages amounting to 6.75 billion zlotys ($1.65
billion). In parallel, the fintech has announced plans to attract foreign
investment to stabilize its operations. Nearly a month ago, the company
disclosed that it was in advanced discussions with an investment fund, which
could provide crucial financial support.

As
Conotoxia navigates these challenges, its legal battles and efforts to secure a
European banking license remain pivotal to its strategy for overcoming
regulatory and operational hurdles.