Zonda-linked Femion files for bankruptcy after TryPay collapse

Femion Technology, a fintech linked to the collapsed Zondacrypto exchange, filed for bankruptcy protection over the weekend after its payment subsidiary, TryPay, stopped operating and erased the group’s main source of income.

TryPay was licensed by Poland’s Financial Supervision Authority (KNF) and acted as the primary bridge between Polish bank accounts and Zondacrypto. The processor handled the majority of fiat deposits for the exchange and accounted for nearly 70% of the group’s revenue. Zondacrypto halted client withdrawals early last month amid liquidity problems.

TryPay terminated its contract with Zonda’s operator, BB Trade Estonia, in an attempt to detach from the exchange, but the payment firm could not survive without Zondacrypto business. With TryPay no longer generating income, Femion’s financial position deteriorated rapidly.

All members of Femion’s supervisory board resigned on April 30. The company has scheduled a meeting in mid-May where directors are expected to decide on formal dissolution. Femion was listed on NewConnect, the Warsaw Stock Exchange platform for smaller, tech-oriented firms.

Femion is controlled by Chief Executive Przemysław Kral, who holds 49% of the company’s stock and has been absent from public view since mid-April. Kral denied reports that an analysis showed the exchange had lost more than 99% of its reserves. He has accused Zondacrypto founder Sylwester Suszek, who disappeared in 2022, of failing to hand over keys to a wallet reportedly holding 4,500 BTC.

Polish prosecutors opened an investigation into Zondacrypto after identifying thousands of customers with combined losses estimated at more than 350 million zloty (about $95 million). Investigators are tracing customer losses and the business relationships between Zondacrypto, TryPay and Femion. A court-handled bankruptcy process will determine how creditors and affected customers may recover funds and whether further legal action will follow.

An industry commentator warned, “With such concentration, there is no independent oversight or a true assessment of counterparty risk. The structures were too intertwined for either party to operate with true autonomy.”