Zondacrypto Head Reportedly Charged With Fraud as He Seeks Reduced Sentence for Testimony
Key Takeaways
- •Polish prosecutors reportedly estimate that Zondacrypto customers lost at least 2.4 billion Polish zlotys, or about $650 million.
- •Investigators allege that only part of customer money was used to buy crypto, while the rest was transferred to private accounts controlled by company managers.
- •Przemysław Kral is reportedly cooperating with prosecutors and is seeking a reduced sentence in exchange for testimony.
- •Kral said in April that Zondacrypto could not access a cold wallet holding about 4,500 bitcoin and denied misappropriating funds.
- •The exchange’s spending on CPAC Poland, broadcaster Telewizja Republika, and foundations linked to politicians is under additional scrutiny as part of the probe.
Przemysław Kral, the head of collapsed cryptocurrency exchange Zondacrypto, has reportedly been charged with participating in an alleged large-scale fraud and has begun cooperating with Polish prosecutors.
He is seeking a reduced sentence in exchange for testimony that could include details about Zondacrypto's funding of right-wing politicians, Polish outlet Onet reported Monday.
According to Onet, prosecutors estimate Zondacrypto customers lost at least 2.4 billion Polish zlotys ($650 million). Investigators said the exchange used only part of customer funds to buy crypto, while the rest was transferred to private accounts controlled by Zondacrypto managers.
Onet reported Friday that Kral had spent six months negotiating the terms of possible cooperation with prosecutors. He reportedly held informal meetings with prosecutors in Poland, Sicily and Persian Gulf countries to discuss a potential deal.
Kral has remained silent on X since publicly disclosing in mid-April that Zondacrypto could not access a cold wallet holding about 4,500 Bitcoin. He has denied accusations of misappropriating funds and said the wallet's private keys were supposed to have been transferred by Zonda founder and former CEO Sylwester Suszek, who has been missing since 2022.
Zondacrypto was the main sponsor of the Conservative Political Action Conference (CPAC) held in Poland days before the second round of the presidential election won by Karol Nawrocki. The exchange spent 37 million zlotys on advertising with broadcaster Telewizja Republika in its final year, while companies owned by Kral made payments to foundations linked to politicians Zbigniew Ziobro and Przemysław Wipler. Those ties are drawing added attention as prosecutors examine the exchange's finances and possible political financing links alongside the fraud allegations.
Cointelegraph was unable to reach Kral or Zondacrypto for comment. Their email addresses have been unavailable since Kral's April disclosure that the exchange could not access the Bitcoin wallet.
Related: Zondacrypto CEO goes off radar as Poland probe deepens
