The CoinsPaid Group and Its Network of Entities
Investigative reports by Shana Dovi on Medium have unveiled serious allegations against CoinsPaid, an Austrian crypto payment processor that operates under Dream Finance OÜ in Estonia. The investigation 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 reportedly a frontman for interests linked to Belarus.
A Brief Overview of CoinsPaid
CoinsPaid functions through legal entities located in Estonia, Lithuania, and El Salvador. The primary operating entity, Dream Finance OÜ, possesses a crypto license in Estonia and is overseen by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev serving as CEO. Additionally, the brand CryptoProcessing is also managed by the Estonian entity.
Key Allegations Against CoinsPaid
The allegations against CoinsPaid are serious and multifaceted. Firstly, the company has publicly acknowledged a staggering $37 million loss due to a hack, which contradicts earlier reports of smaller figures. Despite ongoing operations, there are suggestions of impending bankruptcy, as internal financial assessments indicate significant negative equity. Furthermore, CoinsPaid is accused of laundering hundreds of millions of euros annually, with operations allegedly involving a network of Belarusian expatriates that focus on offshore and illegal gambling platforms. The company has also been highlighted for non-compliance with local labor and tax regulations.
In terms of management practices, Maksim Krupyshev, the CEO, is accused of acting as a front 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 evade scrutiny. Whistleblower reports suggest that the risks posed by CoinsPaid to the financial system are significant, reminiscent of previous crises in the crypto sector. Notably, there are allegations of weak regulatory oversight in Estonia, including the renewal of Dream Finance’s license despite existing issues.
The Hidden AlphaPo Connection
Dovi’s investigation has uncovered significant connections between CoinsPaid and another crypto payment processor, AlphaPo. These links indicate operational and managerial overlaps, raising concerns about transparency and compliance. Both companies utilize the same technology and share managerial staff, which raises potential conflicts of interest. They also have a common compliance department, which could lead to confidentiality breaches. Alarmingly, both entities experienced simultaneous security breaches in July 2023, suggesting deep operational integration. Financially, funds and clients appear to move between CoinsPaid and AlphaPo without proper compensation, indicating internal management of financial flows. Personnel discussions and client onboarding decisions are made jointly through shared Slack channels. While CoinsPaid presents itself as separate from AlphaPo in official narratives, internal communications acknowledge their unity, suggesting a deliberate effort to obscure true ownership and control, potentially facilitating unethical or illegal activities.
Key Individuals Involved
Several individuals associated with CoinsPaid and AlphaPo play significant roles in the companies’ questionable operations. Alexander Horst Riedinger is identified as the beneficial owner of the CoinsPaid Group. Maksim Krupyshev, the CEO, is alleged to be a front for Belarusian interests. Ivan Montik, a co-founder of CoinsPaid and founder of SoftSwiss, is also implicated, along with Pavel Kashuba, the former CFO and co-CEO of CoinsPaid. Other notable figures include Frédéric Hubin, a former board member in Estonia for CoinsPaid, and Svetlana Prussova, the board member of Dream Finance OÜ and compliance head. Violaine Champetier de Ribes serves as the public relations head for the Baltics, while Hanna Drabysheuskaya is a payments handler at CoinsPaid. Aliaksei Kuzniatsou is the head of Treasury at both CoinsPaid and AlphaPo, and Maria Akulenko is the former Chief Legal Officer of the CoinsPaid Group.
Business Metrics and Entities
CoinsPaid operates under various trading names, including CoinsPaid, CryptoProcessing, and AlphaPo. Its business activities encompass crypto exchange, OTC desk services, and high-risk payment processing. The company maintains several domains, such as cryptoprocessing.com, coinspaid.com, and alphapo.net, and is active on social media platforms like LinkedIn, Facebook, Instagram, and Twitter. The legal entities associated with CoinsPaid 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, with an authorization from the FIU crypto license no FVT000166.
Ivan Montik, identified as an international criminal from Belarus, is involved in fraud, money laundering, and illegal gambling through various companies, including SoftSwiss, Merkeleon, CoinsPaid, AlphaPo, and CryptoProcessing. His operations span Europe, the United States, Australia, Brazil , New Zealand, and other regions around the globe. The scale of money laundering and fraud associated with these operations is estimated to be in the billions of euros annually.
Unmasking the Global Web of Financial Crime
The interconnected world of modern finance is increasingly plagued by international crime. A comprehensive investigation into the operations of companies like SoftSwiss, Merkeleon, CoinsPaid, CryptoProcessing, and AlphaPo reveals a troubling network of fraud and money laundering. This network implicates a range of individuals and entities that exploit global financial systems for personal gain.
At the center of this sprawling criminal network are international fraudsters from Russia and Belarus, including notable figures such as Ivan Montik, Maksim Trafimovich, Pavel Kashuba, Dmitry Yaikov (also known as Dzmitry Yaikau), Roland Yakovlevich Isaev, Paata Gamgoneishvili, and Max (Maksym) Krupyshev. These individuals are accused of orchestrating extensive schemes that involve fraud and money laundering, resulting in the misappropriation of tens of billions of dollars each year. Their criminal activities often involve various companies and entities, facilitating their illicit operations and allowing them to evade detection.
The investigation highlights the alarming extent to which these individuals and their networks have infiltrated legitimate financial systems, raising serious concerns about the integrity of global finance. The overlapping interests and shared resources among these companies suggest a coordinated effort to obscure the true nature of their operations, making it difficult for regulators and law enforcement to track and address their activities effectively.
In conclusion, the revelations surrounding CoinsPaid and its connections to AlphaPo, along with the broader network of fraud and money laundering involving figures like Ivan Montik, underscore the urgent need for enhanced regulatory oversight and international cooperation to combat financial crime. As these operations continue to evolve, the potential risks to the financial system and the broader economy remain significant, necessitating a proactive approach to safeguard against such threats.
