Conotoxia Ltd's Cyprus Investment Firm Authorisation Fully Suspended Over Regulatory Breaches

The Cyprus Securities and Exchange Commission (CySEC) has announced a full suspension of the authorisation of the Cyprus Investment Firm (CIF) for Conotoxia Ltd, citing alleged regulatory violations. The company holds CIF license number 336/17 and operates as a forex and CFD trading service provider under the Polish-based Conotoxia Holding Group.

source: CySEC

In its announcement, CySEC noted that Conotoxia Ltd. appears to have failed to meet key authorisation conditions, including:

• The composition and oversight of its board of directors
• The suitability of shareholders
• Organizational obligations for client protection.

CySEC highlighted that these alleged violations raise significant concerns regarding investor protection and pose a threat to the integrity and orderly functioning of the financial markets.

Prohibitions Imposed

During the period of license suspension, Conotoxia Ltd. is prohibited from offering or carrying out any investment services, onboarding new clients or entering into any business transactions, and marketing itself as an investment service provider.

The company has been instructed to implement necessary measures within one month or risk the complete revocation of its CIF license.

Group Related Case

Conotoxia Ltd.’s affiliate, Cinkciarz.pl, previously faced accusations of misappropriating client funds intended for currency exchange, allegedly funding other entities within the parent group. Cinkciarz.pl filed for bankruptcy in March, with over $25 million in client losses reported.

Last month, Chief Accountant Monika J. was arrested and admitted guilt, while CEO Marcin Pióro remains at large amid ongoing investigations.