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Polish prosecutors charge fifth suspect in Zondacrypto crypto probe

Zondacrypto stopped trading in April after customers reported frozen or delayed withdrawals, leaving estimated losses of at least $94 million.

Reported · Written up by our desk · Regulation

Polish prosecutors have charged a fifth suspect in an expanded investigation into the collapse of crypto exchange Zondacrypto, previously known as BitBay and rebranded in 2021, CoinDesk reports. The new case adds a fraud-related charge against Roman Ż., a former partner of Zondacrypto founder Sylwester Suszek.

Authorities say the probe has broadened to include the circumstances around Suszek's 2022 disappearance. Prosecutors have received more than 3,600 complaints from users as they investigate suspected large-scale fraud and money laundering tied to the exchange's operations.

Zondacrypto, founded in 2014 as BitBay, had more than 1 million registered users at the time of its rebrand. The exchange stopped trading in April after customers reported withdrawals being frozen or delayed, following payment delays reported in late February and the suspension of bitcoin deposits on March 17, before its website went dark.

CoinDesk reports that the estimated losses for affected customers are at least 350 million zlotys, or about $94 million, and that one bank account holding about 4 million euros has been frozen. In addition, Estonia's financial intelligence unit partially suspended the license of BB Trade Estonia OÜ, the entity behind the brand, barring it from taking in new assets.

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