Polishauthorities have arrested the chief accountant of Cinkciarz.pl, a major localfintech and online FX exchange platform, on charges related to an alleged fraudscheme that prosecutors say cost customers more than 112 million zloty ($25million).Polish Fintech ChiefAccountant Arrested in $25 Million Fraud CaseThe RegionalCourt ordered a three-month detention for Monika J., who served as both chiefaccountant and attorney-in-fact for the company, following a request from the RegionalProsecutor's Office on May 29. The arrest was carried out by officers from the policeand the Central Bureau of Investigation. Earlier, in the same case, a formerCinkciarz.pl board member wasdetained for three months.Prosecutorsallege Monika J. participated in a fraud scheme that misled customers about theactual use of their funds deposited through the Cinkciarz.pl mobileapplication. According to the charges, customer money intended for currencyexchange services was instead diverted to finance operational activities ofother companies within the Conotoxia Holding Group.“Whenquestioned by the prosecutor as a suspect, Monika J. admitted to committing thealleged act and gave extensive explanations in the case,” the RegionalProsecutor’s Office commentedin a statement.The courtagreed with prosecutors that evidence strongly suggests the alleged crimesoccurred and that detention was necessary due to concerns about potentialwitness tampering and the severity of potential penalties.Related: Cinkciarz.plAllegedly Seeks Customer Payments Despite Inability to Process CurrencyExchangesCEO Remains at LargeTheinvestigation has also expanded to include additional charges against MarcinPióro, the CEO of Cinkciarz.pl, who prosecutors say was involved in the samealleged scheme affecting the 112 million zloty in customer funds. However,authorities have been unable to conduct proceedings against the CEO because heis currently outside Poland. A separate arrest warrant request for Marcin P.remains under court review.The casecontinues to develop as authorities receive additional complaints from affectedcustomers. The Regional Prosecutor's Office reports that new victimnotifications related to Cinkciarz.pl operations continueto arrive regularly.The chargescarry potential sentences of up to 25 years in prison.From License Loss toSerious TroubleTheinvestigation beganin October 2024 following a referral from Poland's Financial SupervisionAuthority after numerous customer complaints about delayed and unfulfilledcurrency transactions.Cinkciarz.pl,once considered a success story in Poland's fintech sector, has faced mountingscrutiny over its business practices. The Ministry of Justice reports that morethan 2,000 notifications have been filed during the investigation,primarily from customers of the Cinkciarz.pl platform.The caserepresents one of the largest alleged financial fraud schemes in Poland'sfintech industry, highlighting regulatory challenges in the rapidly growing fintechsector.This article was written by Damian Chmiel at www.financemagnates.com.