Investigative reports by Shana Dovi on Medium have revealed serious allegations against CoinsPaid, an Austrian crypto payment processor operated under Dream Finance OÜ via Estonia. The report outlines a complex web of financial misconduct, fraud, and regulatory evasion allegedly orchestrated by the company’s management and shadow stakeholders. Notably, the Austrian beneficial owner is allegedly a frontman for Belarusian interests.
CoinsPaid operates through legal entities in Estonia, Lithuania, and El Salvador. Its main operating entity, Dream Finance OÜ, holds a crypto license in Estonia and is controlled by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev as CEO. Another associated brand, CryptoProcessing, is also operated by the Estonian entity.
Key allegations against CoinsPaid include financial misconduct and bankruptcy, with public acknowledgment of a $37 million loss due to a hack, conflicting with earlier smaller figures. There are suggestions of bankruptcy despite continued operations, as internal financial assessments reveal significant negative equity. The company is accused of laundering hundreds of millions of euros annually, with operations allegedly involving a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms, and highlighted non-compliance with local labor and tax regulations. Maksim Krupyshev, a Ukrainian crypto influencer and CoinsPaid CEO, is accused of fronting for Belarusian operators, manipulating corporate structures to facilitate financial crimes without direct corporate implications. The company is also said to exploit regulatory loopholes in Estonia and other jurisdictions, establishing front companies to obscure operations and avoid scrutiny. Whistleblower reports suggest broader risks to the financial system akin to previous crypto sector crises, with allegations of weak regulatory oversight in Estonia, including the renewal of Dream Finance’s license despite issues.
Shana Dovi’s investigation reveals significant connections between CoinsPaid and another crypto payment processor, AlphaPo. These links suggest operational and managerial overlaps, raising concerns about transparency and compliance. Both companies utilize the same technology and share managerial staff. A shared compliance department raises potential conflicts of interest and confidentiality breaches. Both entities were hacked simultaneously in July 2023, suggesting deep operational integration. Funds and clients appear to move between CoinsPaid and AlphaPo without proper financial compensation, indicating internal management of financial flows. Personnel discussions and client onboarding decisions are made jointly via shared Slack channels. CoinsPaid presents itself as separate from AlphaPo in official narratives while internally acknowledging their unity. These connections suggest a deliberate effort to obfuscate true ownership and control, potentially facilitating unethical or illegal activities.
The report highlights several individuals associated with CoinsPaid and AlphaPo. Alexander Horst Riedinger is the beneficial owner of CoinsPaid Group. Maksim Krupyshev serves as the CEO of CoinsPaid and is alleged to be a front for Belarusian interests. Ivan Montik is a co-founder of CoinsPaid and the founder of SoftSwiss. Pavel Kashuba is the former CFO and co-CEO of CoinsPaid. Frédéric Hubin was a former board member in Estonia for CoinsPaid. Svetlana Prussova is a board member of Dream Finance OÜ and the compliance head. Violaine Champetier de Ribes is the public relations head for the Baltics. Hanna Drabysheuskaya is a payments handler at CoinsPaid. Aliaksei Kuzniatsou is the head of Treasury at CoinsPaid and AlphaPo. Maria Akulenko is the former Chief Legal Officer of CoinsPaid Group.
CoinsPaid operates under various trading names, including CoinsPaid, CryptoProcessing, and AlphaPo. Its business activities encompass crypto exchange, OTC desk, and high-risk payment processing. The domains associated with these activities are https://cryptoprocessing.com, https://coinspaid.com, and https://alphapo.net. The company maintains a presence on social media platforms such as LinkedIn, Facebook, Instagram, and Twitter. Legal entities include Dream Finance OÜ in Estonia, Dream Finance UAB in Lithuania, Dream Finance S.A. in El Salvador, A.R. Merkeleon GmbH in Austria, and Skylock Investments Ltd in Cyprus. The jurisdictions in which it operates include Estonia, Austria, Cyprus, El Salvador, and St. Vincent & The Grenadines. The company holds an FIU crypto license numbered FVT000166.
The report also emphasizes the potential implications of these allegations for the broader financial ecosystem. The interconnectedness of CoinsPaid and AlphaPo raises questions about the integrity of crypto payment processing and the effectiveness of regulatory frameworks in place. The alleged financial misconduct and regulatory evasion could undermine trust in the crypto industry, particularly in regions where oversight is already perceived as weak.
Furthermore, the involvement of individuals with ties to Belarusian interests adds a layer of complexity to the situation. This connection may suggest that the operations of CoinsPaid and AlphaPo are not merely business ventures but could also be part of a larger strategy to exploit regulatory gaps and engage in illicit activities. The potential for money laundering and other financial crimes could have far-reaching consequences, not only for the companies involved but also for the jurisdictions in which they operate.
As investigations continue, the focus will likely remain on the actions of the management and the regulatory responses from authorities in Estonia and beyond. The outcomes of these inquiries could lead to significant changes in how crypto payment processors are regulated and monitored, aiming to prevent similar situations in the future. The need for enhanced transparency and accountability in the crypto sector has never been more critical, as stakeholders seek to protect the integrity of financial systems worldwide.
