The CoinsPaid Group and Its Network of Entities
Investigative reports by Shana Dovi on Medium have revealed serious allegations against CoinsPaid, an Austrian crypto payment processor that operates under Dream Finance OÜ in 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 reportedly 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 serving as CEO. Another associated brand, CryptoProcessing, is also operated by the Estonian entity.
Key Allegations Against CoinsPaid
The allegations against CoinsPaid include several serious issues. First, there are claims of financial misconduct and bankruptcy, highlighted by a public acknowledgment of a $37 million loss due to a hack, which conflicts with earlier smaller figures. There are suggestions of bankruptcy despite continued operations, as internal financial assessments reveal significant negative equity.
Additionally, CoinsPaid is accused of involvement in money laundering, allegedly laundering hundreds of millions of euros annually. The operations reportedly involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms, and there is highlighted non-compliance with local labor and tax regulations.
Dubious management practices are also a concern, with Maksim Krupyshev, a Ukrainian crypto influencer and CEO of CoinsPaid, accused of fronting for Belarusian operators. There are allegations of manipulation of corporate structures to facilitate financial crimes without direct corporate implications.
Regulatory evasion and compliance issues are further highlighted, with claims of exploitation of regulatory loopholes in Estonia and other jurisdictions. The establishment of front companies is said to obscure operations and avoid scrutiny.
The impact and scope of operations raise alarms, as whistleblower reports suggest broader risks to the financial system akin to previous crises in the crypto sector. Allegations of weak regulatory oversight in Estonia are also noted, including the renewal of Dream Finance’s license despite existing 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 include the fact that both companies utilize the same technology and share managerial staff. They also have a common compliance department, which raises potential conflicts of interest and confidentiality breaches. Furthermore, both entities were hacked simultaneously in July 2023, suggesting deep operational integration.
There appears to be financial interdependence, as funds and clients seem to move between CoinsPaid and AlphaPo without proper financial compensation, indicating internal management of financial flows. Personnel discussions and client onboarding decisions are made jointly via shared Slack channels. Despite this, 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, suggesting their involvement in the companies’ questionable operations. Alexander Horst Riedinger is identified 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 noted as a co-founder of CoinsPaid and the founder of SoftSwiss. Pavel Kashuba, Maksim Trafimovich, Dzmitry Yaikau is mentioned as the former CFO and co-CEO of CoinsPaid, while Frédéric Hubin served as a former board member in Estonia for CoinsPaid. Svetlana Prussova is identified as a board member of Dream Finance OÜ and the compliance head. Violaine Champetier de Ribes is the public relations head for the Baltics, and Hanna Drabysheuskaya is a payments handler at CoinsPaid. Aliaksei Kuzniatsou is the head of Treasury at both CoinsPaid and AlphaPo, and Maria Akulenko is noted as the former Chief Legal Officer of the CoinsPaid Group.
Business Metrics and Entities
CoinsPaid operates under several trading names, including CoinsPaid, CryptoProcessing, and AlphaPo. Its business activities encompass crypto exchange, OTC desk, and high-risk payment processing. The company maintains several domains, including cryptoprocessing.com, coinspaid.com, and alphapo.net, and is active on social media platforms such as 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. The company holds a crypto license from the Financial Intelligence Unit, numbered FVT000166.
This license allows CoinsPaid to operate within the regulatory framework established for cryptocurrency activities, although the ongoing allegations raise questions about the legitimacy and compliance of its operations.
In summary, the investigation into CoinsPaid reveals a troubling landscape of potential financial misconduct, regulatory evasion, and connections to other entities that may further complicate its operational integrity. The involvement of key individuals and the intricate web of relationships between CoinsPaid and AlphaPo suggest a need for closer scrutiny by regulatory authorities to ensure compliance and protect the financial system from potential risks associated with these operations.
