Key Takeaways
- Marian Kmita replaced ousted head Radoslaw Piesiewicz at PKOl on Sept. 14 following corruption charges.
- Zondacrypto collapsed into a $94 million Ponzi scheme after signing a high-profile Olympic sponsorship.
- PKOl launched an immediate financial audit ahead of electing a permanent president in April.
Mounting Internal Pressure
The Polish Olympic Committee (PKOl) has dismissed its president following his arrest on corruption charges related to a collapsed cryptocurrency firm, the organization’s newly appointed leader announced Sept. 14. Marian Kmita told reporters that the executive board voted to remove Radoslaw Piesiewicz and appoint Kmita as acting president.
According to local reports, Kmita will now lead the committee through the remainder of Piesiewicz’s original term, which ends in April.
Piesiewicz’s removal came a few weeks after he was arrested on suspicion of receiving kickbacks from the now-defunct cryptocurrency exchange Zondacrypto. The former president had previously negotiated and signed the major sponsorship agreement between the Olympic committee and the cryptocurrency exchange.
Pressure had been mounting within the organization for a leadership change. Kmita noted that internal resistance to Piesiewicz had brewed for months, pointing to a formal protest raised by a group of 15 committee members who questioned the sponsorship agreement with Zondacrypto shortly after it was inked last year.
Polish authorities launched an investigation into the matter in April, triggering widespread calls from the country’s sports federations for Piesiewicz to step down. The probe followed media reports which alleged former Zondacrypto chief executive Przemysław Kral provided Piesiewicz with lavish gifts, including a luxury watch valued at $46,605. In exchange, the Olympic chief would use his influence to intervene on behalf of the exchange with UOKiK, Poland’s consumer protection authority.
Government officials also allege that Zondacrypto operated as a Ponzi scheme and had ties to nationalist opposition groups, organized crime, and Russian intelligence services. According to government estimates, the company’s collapse resulted in approximately $94 million in financial losses and affected around 30,000 victims.
Meanwhile, Kmita acknowledged that the fallout from the scandal has left the Polish Olympic Committee in a “rather difficult financial situation.” He announced that the organization will launch an immediate audit to assess the full extent of the financial damage.
