Former BitBay Partner Charged in Zondacrypto Fraud Probe

Polish prosecutors have charged a former business partner of missing BitBay founder Sylwester Suszek with two offenses, including fraud, as authorities expand their investigation into the collapse of cryptocurrency exchange Zondacrypto.

Roman Ż. is at least the fifth person charged since prosecutors combined the Zondacrypto case with an investigation into Suszek’s disappearance. Suszek founded BitBay in 2014 and served as its CEO before leaving the company. The exchange had more than 1 million registered users when it rebranded as Zondacrypto in 2021.

Zondacrypto encountered serious problems earlier this year after customers reported frozen or delayed withdrawals. Payment delays emerged in February, while Bitcoin deposits were suspended on March 17. Trading eventually stopped in April and the platform’s website went offline.

Estonian authorities also partially suspended the license of BB Trade Estonia OÜ, the company behind Zondacrypto, preventing it from accepting new customer assets.

Customers are estimated to have suffered losses of at least 350 million Polish zlotys, or roughly $94 million. Polish prosecutors are investigating suspected large-scale fraud and money laundering and had received more than 3,600 complaints by June. The investigation has been extended into next year, while authorities have reportedly frozen €4 million held in a bank account.

Roman Ż. was arrested Saturday in Poland’s Silesian region. His lawyer, Błażej Gazda, said Ż. previously helped manage BitBay before its transformation into Zonda. Prosecutors charged him with fraud and another offense that has not been publicly disclosed.

Ż. denied the allegations and provided investigators with an extensive statement, according to his attorney. Authorities are seeking pretrial detention, arguing there was a risk he could flee after discovering plans for a trip to China. Gazda said the journey was business-related and that Ż. had a return ticket for September 13.

Police also seized valuable watches and documents linked to Zondacrypto during searches.

The widening Zondacrypto investigation has already resulted in several other arrests, including Polish Olympic Committee President Radosław Piesiewicz, who denies allegations involving paid protection and preferential treatment of certain Zondacrypto creditors. Three additional suspects were detained last week as prosecutors continue examining the exchange’s collapse and its possible connection to Suszek’s unexplained disappearance in March 2022.