Zondacrypto receives investor alert from Estonia's financial watchdog
The alert comes amid a Polish law enforcement probe targeting the cryptocurrency platform and multiple complaints regarding user fund withdrawals.
The Financial Supervision and Resolution Authority (FSA) of Estonia, which serves as the nation's financial regulatory body, has released an investor alert concerning BB Trade Estonia OÜ, the entity responsible for running the Zondacrypto digital currency trading platform.
According to the FSA, the organization failed to maintain a white paper on its website for the "TeamPL" cryptocurrency token available on the trading platform, representing a breach of the Markets in Crypto-Assets (MiCA) regulatory framework established by the European Union. The FSA stated:
"This action violates Article 9, Section 1 of [MiCA], according to which crypto-asset white papers shall remain available on the website of the offerors or persons seeking admission trading for as long as the crypto-assets are held by the public."
A request for comment was sent to Zondacrypto by Cointelegraph, however no reply had been received at the time this article was published.
The regulatory alert from Estonia's financial authority comes on the heels of reports concerning problems with withdrawals at the Zondacrypto platform and a formal investigation launched by Polish authorities.
Zondacrypto faces investigation following withdrawal and access issues
During April, Przemysław Kral, the chief executive officer of Zonda, revealed that the platform lacked access to a cold storage wallet holding approximately 4,500 Bitcoin (BTC), with a current market value of roughly $360 million based on prices at the time of writing.
According to Kral's statement, the private keys to the wallet were never transferred by Sylwester Suszek, who founded Zondacrypto and previously served as its chief executive officer, and who has not been seen since 2022. Kral also pushed back against speculation suggesting the platform is experiencing insolvency, stating that all customer obligations would be fulfilled.
Authorities in Poland launched an investigation into the organization in April, after receiving multiple reports from platform users experiencing problems withdrawing their funds and gaining access to their accounts.
Following the initiation of the investigation, Kral has maintained silence on his social media channels, with his last update appearing on April 16. Media sources in Poland have reported that he traveled to Israel, where he holds citizenship, as Polish law enforcement officials continued their investigation.
During a February interview with Cointelegraph, he explained that the organization maintains its operations outside Polish jurisdiction due to the country's failure to align its cryptocurrency regulations with the MiCA framework implemented by the European Union.
"Although we are a company with Polish roots and the largest player in the crypto industry on the Polish market, we have been operating outside Poland for years," he said.