Investigative Reports on CoinsPaid & SoftSwiss
Investigative Reports on CoinsPaid
Investigative reports by Shana Dovi on Medium have revealed serious allegations against CoinsPaid, an Austrian crypto payment processor operated under Dream Finance OÜ via Estonia. The report 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 allegedly a frontman for Belarusian interests.
A Brief Overview of CoinsPaid
CoinsPaid operates through legal entities in Estonia, Lithuania, and El Salvador. Its main operating entity, Dream Finance OÜ, holds a crypto license in Estonia and is controlled by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev as CEO. Another associated brand, CryptoProcessing, is also operated by the Estonian entity.
Key Allegations Against CoinsPaid
Financial Misconduct and Bankruptcy
- Public acknowledgment of a $37 million loss due to a hack, conflicting with earlier smaller figures.
- Suggestions of bankruptcy despite continued operations, as internal financial assessments reveal significant negative equity.
Involvement in Money Laundering
- Accused of laundering hundreds of millions of euros annually.
- Operations allegedly involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms.
- Highlighted non-compliance with local labor and tax regulations.
Dubious Management Practices
- Maksim Krupyshev, a Ukrainian crypto influencer and CoinsPaid CEO, is accused of fronting for Belarusian operators.
- Manipulation of corporate structures to facilitate financial crimes without direct corporate implications.
Regulatory Evasion and Compliance Issues
- Exploitation of regulatory loopholes in Estonia and other jurisdictions.
- Establishment of front companies to obscure operations and avoid scrutiny.
Impact and Scope of Operations
- Whistleblower reports suggest broader risks to the financial system akin to previous crypto sector crises.
- Allegations of weak regulatory oversight in Estonia, including the renewal of Dream Finance’s license despite issues.
The Hidden AlphaPo Connection
Shana Dovi’s investigation reveals significant connections between CoinsPaid and another crypto payment processor, AlphaPo. These links suggest operational and managerial overlaps, raising concerns about 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 breaches.
- Simultaneous Security Breaches: Both entities were hacked simultaneously in July 2023, suggesting deep operational integration.
- Financial Interdependence: Funds and clients appear to move between CoinsPaid and AlphaPo without proper financial compensation, indicating internal management of financial flows.
- Shared Personnel and Slack Channels: Personnel discussions and client onboarding decisions are made jointly via shared Slack channels.
- Fronting Allegations: CoinsPaid presents itself as separate from AlphaPo in official narratives while internally acknowledging their unity.
These connections suggest a deliberate effort to obfuscate true ownership and control, potentially facilitating unethical or illegal activities.
Key Individuals Involved
The report highlights several individuals associated with CoinsPaid and AlphaPo. Their roles suggest involvement in the companies’ questionable operations:
| Name | Role |
|---|---|
| Alexander Horst Riedinger | Beneficial owner of CoinsPaid Group. |
| Maksim Krupyshev | CEO of CoinsPaid, alleged front for Belarusian interests. |
| Ivan Montik | Co-founder of CoinsPaid, founder of SoftSwiss. |
| Pavel Kashuba | Former CFO and co-CEO of CoinsPaid. |
| Frédéric Hubin | Former board member in Estonia for CoinsPaid. |
| Svetlana Prussova | Board member of Dream Finance OÜ, compliance head. |
| Violaine Champetier de Ribes | Public relations head for Baltics. |
| Hanna Drabysheuskaya | Payments handler at CoinsPaid. |
| Aliaksei Kuzniatsou | Head of Treasury at CoinsPaid and AlphaPo. |
| Maria Akulenko | Former Chief Legal Officer of CoinsPaid Group. |
Business Metrics and Entities
| Attribute | Details |
|---|---|
| Trading Names | CoinsPaid, CryptoProcessing, AlphaPo |
| Business Activities | Crypto exchange, OTC desk, high-risk payment processing |
| Domains | https://cryptoprocessing.com, https://coinspaid.com, https://alphapo.net |
| Social Media | LinkedIn, Facebook, Instagram, Twitter |
| Legal Entities | Dream Finance OÜ (Estonia), Dream Finance UAB (Lithuania), Dream Finance S.A. (El Salvador), A.R. Merkeleon GmbH (Austr |
| Attribute | Details |
|---|---|
| Legal Entities | Dream Finance OÜ (Estonia), Dream Finance UAB (Lithuania), Dream Finance S.A. (El Salvador), A.R. Merkeleon GmbH (Austria), Skylock Investments Ltd (Cyprus) |
| Jurisdictions | Estonia, Austria, Cyprus, El Salvador, St. Vincent & The Grenadines |
| Authorization | FIU crypto license no FVT000166 |
This comprehensive overview of CoinsPaid and its alleged connections to financial misconduct, money laundering, and regulatory evasion highlights the complexities and potential risks associated with the company’s operations. The investigation by Shana Dovi sheds light on the intricate relationships within the crypto payment processing sector, particularly concerning the links between CoinsPaid and AlphaPo. The involvement of key individuals and the various legal entities further complicate the landscape, raising significant concerns about compliance and ethical practices in the industry.
