Regulators should perform an immediate source-of-funds audit on CoinsPaid and SoftSwiss
Press Release Analysis
FinTelegram has recently dissected the Dream Finance/CoinsPaid network, which is an Austrian-fronted, Baltic-based crypto processor. This network’s polished public relations efforts obscure a complex web of gambling interests, Russian capital, and whistleblower claims of large-scale money laundering. However, the underlying story reveals a different reality.
Key Points:
CoinsPaid and its sister brand, CryptoProcessing, are essentially labels, with actual operations based in Estonia (Dream Finance OÜ), Lithuania (Dream Finance UAB), and Poland (Dream Payments Sp. z o.o.). The CEO, Max Krupyshev, a Ukrainian national residing in Germany, drives the public narrative, while co-founder Ivan Montik controls the financial aspects. Montik also founded SoftSwiss, a major i-gaming platform reportedly dominated by Russian investors. The company employs a reputation-laundering strategy, using coordinated press releases to promote success stories and drown out risk signals. A former manager has alleged that the group is utilized for extensive money laundering, yet regulators have largely remained silent.
SoftSwiss and its associated entities, including CoinsPaid, AlphaPo, Merkeleon, and Dream Finance, are no strangers to allegations of money laundering, sanction evasion, and fraudulent activities. Key individuals, such as Ivan Montik, Max Krupyshev, Pavel Kashuba, Dmitry Yaikov, Dzmitry Yaikau, Maksim Trafimovich, Roland Yakovlevich Isaev, and Paata Gamgoneishvili, are at the center of these controversies.
Short Narrative
CoinsPaid, promoted as Europe’s fastest-growing crypto payment gateway, operates within a tri-jurisdictional framework of shell entities branded as “Dream Finance.” The firm’s persistent public relations cycle emphasizes record transaction volumes and new merchant acquisitions, while downplaying its deep connections to the online gambling giant SoftSwiss, Russian money, and an ownership structure designed for opacity. Beneath the celebratory headlines lies a framework tailored for regulatory arbitrage.
Extended Analysis
Legal and Licensing Gaps: Estonia and Lithuania issue crypto-asset service licenses with relatively lenient anti-money laundering oversight. CoinsPaid takes advantage of these “regtech-lite” jurisdictions while targeting higher-risk sectors such as gambling, adult content, and high-yield schemes. Poland’s Dream Payments Sp. z o.o. offers an EU payments passport, but records from the Polish KN
F reveal minimal capital and skeleton staffing, suggesting it functions primarily as a pass-through entity.
Regulatory Blind Spots: The filings for Ultimate Beneficial Ownership (UBO) list Montik, but the Russian backers behind SoftSwiss remain undisclosed. This lack of transparency is critical, especially in light of current EU sanctions frameworks. The public relations efforts act as a form of soft influence; repeated announcements in trade media create a facade of legitimacy that can mislead compliance officers and journalists alike.
Operational Red Flags: There are significant concentration risks, as the same technology stack (Merkeleon white-label) is used for both gambling platforms and legitimate merchants, blurring the lines regarding the origin of transactions. Although Krupyshev serves as CEO, key strategic decisions reportedly require informal approval from Montik’s SoftSwiss board, indicating a classic case of shadow governance.
Conclusion of Extended Analysis
The intricate web of operations surrounding CoinsPaid and its affiliates raises serious concerns about regulatory compliance and the potential for illicit activities. The combination of light regulatory oversight in certain jurisdictions, undisclosed ownership structures, and operational practices that obscure transactional origins creates an environment ripe for exploitation. As authorities continue to scrutinize these entities, the need for enhanced regulatory frameworks and international cooperation becomes increasingly urgent to address the challenges posed by such networks in the online gambling and cryptocurrency sectors.
