Unraveling the Allegations Against CoinsPaid, AlphaPo & SoftSwiss

Recent investigative reports by Shana Dovi on Medium have brought to light serious accusations against CoinsPaid, an Austrian cryptocurrency payment processor operating under Dream Finance OÜ in Estonia. The findings reveal a complex network of alleged financial misconduct, fraud, and regulatory evasion purportedly orchestrated by the company’s management and hidden stakeholders. Notably, the Austrian beneficial owner is said to act as a front for interests linked to Belarus.

Overview of CoinsPaid

CoinsPaid operates through various legal entities in Estonia, Lithuania, and El Salvador. Its primary operating entity, Dream Finance OÜ, holds a cryptocurrency license in Estonia and is managed by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev serving as CEO. Another brand associated with this entity is CryptoProcessing.

Key Allegations Against CoinsPaid

• Financial Misconduct and Bankruptcy:
  • The company publicly acknowledged a $37 million loss due to a hack, which contradicts earlier reports of smaller losses.
  • There are indications of potential bankruptcy despite ongoing operations, as internal assessments reveal significant negative equity.
• Involvement in Money Laundering:
  • CoinsPaid is accused of laundering hundreds of millions of euros annually.
  • Allegations suggest operations involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms, with non-compliance to local labor and tax laws.
• Dubious Management Practices:
  • CEO Maksim Krupyshev, a Ukrainian crypto influencer, is alleged to be a front for Belarusian operators.
  • The manipulation of corporate structures is suggested to facilitate financial crimes without direct corporate implications.
• Regulatory Evasion and Compliance Issues:
  • The company is accused of exploiting regulatory loopholes in Estonia and other jurisdictions.
  • Front companies are allegedly established to obscure operations and evade scrutiny.
• Impact and Scope of Operations:
  • Whistleblower reports indicate broader risks to the financial system, reminiscent of past crises in the crypto sector.
  • Concerns have been raised about weak regulatory oversight in Estonia, including the renewal of Dream Finance’s license despite existing issues.

The AlphaPo Connection

Dovi’s investigation uncovers significant ties between CoinsPaid and another crypto payment processor, AlphaPo. These connections raise concerns regarding operational transparency and compliance.

Key Points of Connection

• Shared Technology and Management:
  • Both companies utilize the same technology and share managerial staff.
• Common Compliance Department:
  • A shared compliance department raises potential conflicts of interest and confidentiality issues.
• Simultaneous Security Breaches:
  • Both entities experienced simultaneous hacks in July 2023, indicating deep operational integration.
• Financial Interdependence:
  • Funds and clients appear to move between CoinsPaid and AlphaPo without proper financial compensation, suggesting internal management of financial flows.
• Shared Personnel and Communication:
  • Personnel discussions and client onboarding decisions are made jointly through shared communication channels.
• Fronting Allegations:
  • While CoinsPaid presents itself as separate from AlphaPo in official narratives, internal communications acknowledge their interconnectedness.

These connections imply a deliberate effort to obscure true ownership and control, potentially facilitating unethical or illegal activities.

Key Individuals Involved

The report highlights several individuals associated with CoinsPaid and AlphaPo, suggesting their involvement in questionable operations:

Business Metrics and Entities