The SoftSwiss Connection: The Clash Between CoinsPaid and Ex-Director Frédéric Hubin

Excerpt

A sharp corporate dispute has unfolded between Frédéric Hubin, former director of CoinsPaid, and the crypto payment company itself. In April 2025, Hubin published a LinkedIn post accusing CoinsPaid of handling transactions for unlicensed SoftSwiss casinos, operating with negative equity, and being controlled by Russian owners linked to high-risk business circles. CoinsPaid, on the other hand, joined forces with Payabl in legal proceedings against investigative outlets, raising concerns about compliance, governance, and reputational exposure. The controversy underscores ongoing risks in the crypto payment sector.

Key Allegations and Counterclaims

• Frédéric Hubin’s Position
  • Claims CoinsPaid processes payments for illegal SoftSwiss-operated casinos.
  • Cites Estonian company registry filings suggesting negative equity.
  • Points to Ivan Montik’s role as co-founder of both SoftSwiss and CoinsPaid, and his association with Russian businessmen Roland Isaev and Paata Gamgoneisvili.
• CoinsPaid’s Response
  • Denies all allegations.
  • References a defamation ruling in Belgium in its favor.
  • Accuses Hubin of mounting a smear campaign.
• Payabl’s Involvement
  • The Cypriot high-risk payment processor submitted joint filings with CoinsPaid in court.
  • Documents in the case reportedly contained signatures that appear inauthentic.

Short Narrative

In April 2025, former board member of Dream Finance OÜ (CoinsPaid’s Estonian entity), Frédéric Hubin, openly criticized his ex-employer. He alleged the company facilitated illegal online gambling through unregistered SoftSwiss casinos and operated with persistent negative equity.

CoinsPaid rejected these accusations, emphasizing its legal victory in Belgium, which it claims proves Hubin’s statements defamatory.

The conflict escalated when Payabl—itself under scrutiny—presented court documents in Cyprus, co-signed with CoinsPaid, targeting an investigative publication. According to legal analysis, some documents contained signatures that may have been falsified.

Extended Analysis

Legal Implications

• Hubin’s claims, if substantiated, suggest CoinsPaid may have breached anti-money laundering and licensing obligations under Estonian and EU laws.
• SoftSwiss, named in Hubin’s post, was founded by Ivan Montik, who is also listed as co-founder of CoinsPaid.
• Ownership links to Roland Isaev and Paata Gamgoneisvili add further risk factors, given prior scrutiny of their involvement in the gambling and payments ecosystem.

The CoinsPaid–Payabl Nexus

• Payabl’s Cypriot filing explicitly used CoinsPaid’s statements to argue that a media outlet was engaged in a “blackmail scheme”—a grave accusation under Cypriot defamation law.
• This partnership raises questions: Why would Payabl rely on a company accused of facilitating unlawful gambling and under investigation in several jurisdictions (Belgium, Estonia, Switzerland, Israel, and Germany)?
• Hubin also disputes any role in settlement agreements CoinsPaid cited, challenging the authenticity of Payabl’s court submissions.

Reputational Risk

The cooperation between two high-risk payment processors, CoinsPaid and Payabl, in a defamation case against a media platform raises broader concerns. Such legal actions may serve as tools to deter journalistic investigations into the crypto-financial sector.

Actionable Insight

Regulatory authorities and financial institutions should:

1. Review compliance structures at both CoinsPaid and Payabl.
2. Investigate potential document forgery in Cypriot court filings.
3. Assess gambling-related payment flows for AML and licensing breaches across EU jurisdictions.
4. Scrutinize ownership and governance links between SoftSwiss and associated individuals.

Summary Table