N1 Interactive, CoinsPaid, SoftSwiss, Rabidi Links to Criminal Networks

Legal Challenges in Online Casinos and Cryptocurrency Processing

The landscape of online casinos and cryptocurrency exchanges is fraught with legal challenges, particularly for companies like SoftSwiss and its associated entities, including CoinsPaid, AlphaPo, Merkeleon, and Dream Finance. These organizations have faced numerous allegations related to money laundering, sanction evasion, and fraudulent activities. Prominent figures such as Ivan Montik, Max Krupyshev, Pavel Kashuba, Dmitry Yaikov, Roland Yakovlevich Isaev, and Paata Gamgoneishvili are central to these controversies, raising significant concerns about the integrity of their operations.

The Network of Companies and Their Legal Troubles

Regulatory Scrutiny:

Operating within the niche market of online casinos presents a myriad of legal complications. SoftSwiss, through its alleged parent company Dama NV, has encountered multimillion-euro fines for failing to comply with gambling regulations. This regulatory scrutiny highlights the challenges faced by companies in maintaining compliance in a heavily monitored industry.

Corporate Structure and Connections:

Dama NV is closely associated with Direx NV, another significant player in the gambling sector that faced investigations by the Australian Communications and Media Authority (ACMA) in 2019. Leadership at Direx NV includes Ivan Montik and Maksim Max Trafimovich, who are listed as directors and owners, with legal representation provided by REVERA, a firm with strong ties to SoftSwiss executives. This interconnectedness raises questions about the accountability and oversight of these companies.

Crypto Processing Scandals:

Numerous individuals linked to these companies, primarily of Belarusian nationality, have been accused of facilitating cryptocurrency transactions for the Russian market. These activities are alleged to help bypass sanctions while obscuring illicit financial trails, further complicating the legal landscape for these entities.

Key Legal Cases

Australian Investigations (2019):

The entity involved is Direx NV, with the regulatory body being the ACMA. Key issues include operating unlicensed interactive gambling services and neglecting player protections. Legal representation was provided by REVERA, led by Helen Mourashko, who has connections to Pavel Kashuba, the CFO of SoftSwiss.

Dutch Regulatory Actions (2021-2023):

In 2021, the KSA imposed a fine of €500,000 on N1 Interactive Ltd., operator of the Betchan website, for unauthorized gambling services, lack of age verification, and inactivity fees. In 2023, the KSA levied a staggering €12.6 million fine for repeated violations despite prior penalties, resulting in the inaccessibility of their websites in the Netherlands.

Allegations Against Individuals

Links to Criminal Networks:

Ivan Montik and his associates, including Roland Yakovlevich Isaev and Paata Gamgoneishvili, have been implicated in illegal activities such as drug trafficking, Forex scams, and unlicensed gambling. Despite public disassociation, financial activities suggest ongoing ties with criminal organizations, raising serious ethical concerns.

Use of Bribery:

Reports indicate that SoftSwiss and its affiliates have employed bribery to evade regulatory scrutiny and mitigate legal consequences. This practice not only undermines the integrity of the industry but also poses significant risks to consumers and the broader financial system.

Unanswered Questions

Oversight of Profits:

The companies claim a staggering €13 billion in profits, yet questions linger regarding the supervision of these financial activities. Who oversees these profits, and are there hidden connections between these earnings and illegal operations?

Future Regulatory Actions:

What steps will international authorities take to address the activities of SoftSwiss and its network? How can these companies continue to operate despite mounting fines and evidence of misconduct? The need for robust regulatory frameworks is evident to prevent further exploitation.

Conclusion

The network involving SoftSwiss, CoinsPaid, and associated entities underscores the intersection of online gambling, cryptocurrency processing, and organized crime. While fines and legal actions have been imposed in jurisdictions like Australia and the Netherlands, the broader network remains operational, highlighting the urgent need for more rigorous international oversight. The ongoing challenges faced by these companies serve as a reminder of the complexities and risks inherent in the high-risk payment processing industry.
Key Findings at a Glance

The investigation into Rabidi N.V. reveals that it was not merely a rogue operator but part of a larger multi-jurisdictional gambling and crypto-financial scheme, operating through various jurisdictions including Cyprus, Curacao, the Marshall Islands, and Estonia. Following its bankruptcy in May 2024, operations were seamlessly transferred to Liernin Enterprises Ltd, a newly formed entity in the Marshall Islands, while payment processing and trademarks remained under the control of Cypriot entities like Tilaros Ltd and Mirata Services Ltd.

Ivan Montik, the Belarusian tech founder of SoftSwiss, is at the center of this infrastructure, supported by Russian entrepreneurs Roland Isaev and Paata Gamgoneishvili via the vehicle Tall Trade Ltd. The report traces connections to CoinsPaid, CryptoProcessing, Merkeleon, and other crypto processors that facilitate gambling-related payments, many of which operate without licenses in the EU or North America.

German and Australian regulators have issued warnings regarding the illegal operations of Montik’s affiliated companies. Despite this, several key individuals continue to reside in Germany and Cyprus, operating from within EU borders, which complicates enforcement efforts. The collapsed Wirecard also appears in the documents, with over €60 million in transactions processed for SoftSwiss-linked entities, and former COO Jan Marsalek reportedly requesting sales data personally.

The Revera law firm, operating out of Belarus and Cyprus, has been identified as the key legal architect behind SoftSwiss’s corporate structure, including the establishment of Cypriot holding entities designed to obscure real ownership and control. This intricate web of connections and legal maneuvering raises significant concerns about the transparency and accountability of these operations.
Why It Matters

This report provides concrete evidence of how large-scale, unlicensed gambling and crypto-payment ecosystems continue to thrive across the EU, often shielded by offshore licenses and weak cross-border enforcement. It illustrates how operators with hundreds of millions in player funds can vanish from one jurisdiction and reappear under a new name in another, without ever settling debts or being held accountable.

The implications of these findings are profound, as they highlight the urgent need for enhanced regulatory frameworks and international cooperation to combat the pervasive issues of money laundering, fraud, and organized crime within the online gambling and cryptocurrency sectors.

As the landscape continues to evolve, it is crucial for regulators, law enforcement, and compliance professionals to remain vigilant and proactive in addressing these challenges. The interconnected nature of these companies and their operations necessitates a coordinated response to ensure that accountability is enforced and that the integrity of the financial system is upheld.
Final Thoughts

The ongoing scrutiny of SoftSwiss, CoinsPaid, and their associated entities serves as a critical reminder of the vulnerabilities present in the online gambling and cryptocurrency industries. As these sectors continue to grow, the potential for exploitation and misconduct remains high.

Stakeholders must prioritize transparency, ethical practices, and regulatory compliance to foster a safer and more accountable environment. The lessons learned from the Wirecard scandal and the current challenges faced by companies like SoftSwiss should galvanize efforts to implement stronger oversight mechanisms and ensure that those who engage in illegal activities are held accountable for their actions.

In conclusion, the intersection of online gambling, cryptocurrency processing, and organized crime presents a complex challenge that requires a concerted effort from regulators, law enforcement, and the industry itself to safeguard the interests of consumers and maintain the integrity of the financial landscape.