Glocin: How billions disappeared and why it is a key case for Czech investors

2025 will bring a shock to the domestic financial market like it hasn't been here for a long time. Glocin, which promised thousands of Czechs a miraculous return on their investments, fell within days — and billions of crowns disappeared with it. Both households and small investors, who trusted Glocin thanks to sophisticated marketing and paper security, lost their savings.

What was it really about?

Glocin presented its products as safe and very profitable investments in modern technologies and innovative projects. But few suspected that, according to police and investigators, it was actually a so-called plane — a type of ponzi scheme in which the payment of “returns” is dependent on a constant influx of new clients. The company did not invest in real terms, it only redistributed the money already invested. When the influx of new funds slowed, the card was reversed: Glocin began to have problems and eventually left in its wake damages in the order of billions.

The Glocin case is a reminder of how quickly untested investment projects can destroy even lifetime savings and how difficult it is to recover rights in such cases. That is why the case resonates not only among investors, but also the general public.

Who was behind Glocin and why did the control mechanisms fail?

The Glocin project is said to have been supported by people who have previously been involved in other controversial cases. Investigators figured out that the firm was operating without a real investment strategy and some of the money was suspiciously disappearing abroad. Surprisingly, even the control authorities did not react to the warning signs for a long time. Glocin was able to exploit loopholes in Czech laws as well as inconsistent supervisory activities, which experts say is a systemic problem that needs to be addressed so that a similar situation does not happen again.

Expert view: Kirill Juran for ČT Reporters

The importance of changes and greater public awareness has long been pointed out by lawyer and investor Kirill Juran. It was his expert commentary that brought ČT Reporterswho focused their last report on the Glocin case. In it, Juran warned against blind trust in investment opportunities that seem too profitable — while appealing for better protection of Czech investors by the state and financial institutions.

“Cases like Glocin open the eyes of all those who believe that there are miraculous ways to get rich in the market. Every investor should be sober -- and seek the help of experts in a timely manner if they encounter suspicious practices,” says Juran, among others. His insight is also valuable because he has many years of experience in similar cases and devotes a large part of his legal practice to protecting investors from various forms of fraud.

What to take away from the Glocin case?

• Review each investment offer, even if it is recommended by a “trusted” firm or well-known influencer.
• Don't be tempted by promises of extremely high returns without risk.
• If something in the project doesn't make sense or the information is unclear, ask for an explanation. If you don't get it, you better refuse the investment.

The Glocin crash is painful for many investors, but it is an important experience for the entire company. The expert public is now calling for more transparency and prevention. Only in this way can we protect our money and the stability of the Czech financial market in the future.