The CoinsPaid Group and Its Network of Entities
Investigative reports by Shana Dovi on Medium have brought to light serious allegations against CoinsPaid, an Austrian cryptocurrency payment processor that operates under Dream Finance OÜ in Estonia. The investigation reveals a complicated network of financial misconduct, fraud, and regulatory evasion allegedly orchestrated by the company’s management and shadow stakeholders. It is particularly noteworthy that the Austrian beneficial owner is reportedly acting as a front for interests based in Belarus.
An Overview of CoinsPaid
CoinsPaid functions through various legal entities located in Estonia, Lithuania, and El Salvador. The primary operating entity, Dream Finance OÜ, possesses a cryptocurrency license in Estonia and is overseen by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev serving as the CEO. Additionally, another brand associated with CoinsPaid, known as CryptoProcessing, is also managed by the Estonian entity.
Allegations Against CoinsPaid
The allegations against CoinsPaid are serious and multifaceted.
Firstly, there are claims of financial misconduct and potential bankruptcy. The company has publicly acknowledged a staggering loss of $37 million due to a hacking incident, which contradicts earlier reports that cited smaller figures. Despite ongoing operations, there are suggestions of impending bankruptcy, as internal financial evaluations indicate significant negative equity.
Secondly, CoinsPaid is accused of being involved in money laundering activities, allegedly laundering hundreds of millions of euros each year. The operations are said to involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms, while also highlighting non-compliance with local labor and tax regulations.
Thirdly, there are dubious management practices at play. Maksim Krupyshev, the CEO and a Ukrainian crypto influencer, is accused of acting as a front for Belarusian operators. The manipulation of corporate structures is alleged to facilitate financial crimes without direct implications for the corporation.
Additionally, the company is said to exploit regulatory loopholes in Estonia and other jurisdictions, establishing front companies to obscure its operations and evade scrutiny.
Finally, whistleblower reports indicate that the risks posed by CoinsPaid could have broader implications for the financial system, reminiscent of previous crises in the cryptocurrency sector. There are also allegations of weak regulatory oversight in Estonia, including the renewal of Dream Finance’s license despite existing issues.
The Connection to AlphaPo
Shana Dovi’s investigation has uncovered significant links between CoinsPaid and another cryptocurrency payment processor, AlphaPo. These connections suggest operational and managerial overlaps that raise concerns regarding transparency and compliance.
Key points of connection include the use of shared technology and managerial staff between the two companies. They also have a common compliance department, which raises potential conflicts of interest and confidentiality issues. Both entities experienced simultaneous security breaches in July 2023, indicating a deep operational integration. Furthermore, funds and clients seem to move between CoinsPaid and AlphaPo without appropriate financial compensation, suggesting internal management of financial flows. Personnel discussions and client onboarding decisions are made collaboratively through shared Slack channels. While CoinsPaid presents itself as a separate entity from AlphaPo in official communications, there is an internal acknowledgment of 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 identifies several individuals associated with CoinsPaid and AlphaPo, whose roles suggest involvement in the companies’ questionable operations. Alexander Horst Riedinger is noted as the beneficial owner of the CoinsPaid Group. Maksim Krupyshev serves as the CEO of CoinsPaid and is alleged to be a front for Belarusian interests. Ivan Montik is recognized as a co-founder of CoinsPaid and the founder of SoftSwiss. Pavel Kashuba previously held the position of CFO and co-CEO at CoinsPaid. Frédéric Hubin was a former board member in Estonia for CoinsPaid. Svetlana Prussova is a board member of Dream Finance OÜ and heads compliance. Violaine Champetier de Ribes is responsible for public relations in the Baltics. Hanna Drabysheuskaya handles payments at CoinsPaid, while Aliaksei Kuzniatsou is the head of Treasury for both CoinsPaid and AlphaPo. Lastly, Maria Akulenko served as 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 cryptocurrency exchange, over-the-counter (OTC) desk services, and high-risk payment processing. The company maintains several online 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 CoinsPaid operates include Estonia, Austria, Cyprus, El Salvador, and St. Vincent & The Grenadines
