Recent investigative articles by Shana Dovi on Medium have brought forth serious accusations against CoinsPaid, an Austrian cryptocurrency payment processor managed by Dream Finance OÜ, based in Estonia. The reports detail a convoluted narrative of alleged financial improprieties, fraud, and attempts to evade regulatory scrutiny purportedly orchestrated by the company’s leadership and its covert stakeholders. It is claimed that the Austrian beneficial owner serves merely as a figurehead for interests based in Belarus.
Overview of CoinsPaid
CoinsPaid functions as a cryptocurrency payment processor through various legal entities located in Estonia, Lithuania, and El Salvador. The operational entity, Dream Finance OÜ, holds a cryptocurrency license in Estonia and is overseen by Austrian entrepreneur Alexander Horst Riedinger, with Max Krupyshev serving as the CEO. Another brand, CryptoProcessing, is also managed by this Estonian entity.
Main Accusations Against CoinsPaid:
1. Financial Irregularities and Insolvency: The investigation reveals that CoinsPaid publicly reported a $37 million loss due to a cyberattack, which contradicts earlier, lower estimates. This inconsistency has led to speculation that the company may be on the verge of bankruptcy, continuing its operations despite significant negative equity highlighted by internal financial evaluations.
2. Allegations of Money Laundering: CoinsPaid is accused of facilitating the laundering of hundreds of millions of euros each year. This operation reportedly involves a network of Belarusian expatriates and spans several European nations, primarily catering to offshore and illegal gambling operations. The report also emphasizes the company’s failure to adhere to local labor and tax regulations.
3. Questionable Management Practices: Maksim Krupyshev, a Ukrainian crypto influencer and the public face of CoinsPaid, is implicated as a key player in these alleged activities. The report suggests that Krupyshev may be acting as a front for Belarusian interests, who are believed to be the actual operators behind the scenes. Allegations include the manipulation of corporate structures to facilitate financial crimes while avoiding direct accountability.
4. Evasion of Regulatory Compliance: CoinsPaid is said to operate under a facade of compliance while engaging in practices that violate financial and corporate governance standards. This includes the creation of front companies and the exploitation of regulatory loopholes in various jurisdictions, particularly in Estonia, where the company is licensed.
5. Wider Implications for the Financial System: The whistleblower’s disclosures indicate a broader risk to the financial system, reminiscent of past crises within the cryptocurrency sector. The involvement of Estonian authorities, who have seemingly renewed Dream Finance’s license despite these allegations, raises concerns about the effectiveness of regulatory oversight and enforcement.
Connections to AlphaPo
The reports by Shana Dovi reveal a significant and complex relationship between CoinsPaid and another offshore cryptocurrency payment processor, AlphaPo. This connection suggests that both entities operate more as a single entity rather than as distinct companies. Key points of this relationship include:
– Shared Technology and Leadership: The investigation indicates that CoinsPaid and AlphaPo utilize the same technology and are managed by the same group of individuals, suggesting a unified operational structure.
– Joint Compliance Department: Both companies share a compliance department, raising concerns about potential conflicts of interest and breaches of confidentiality, indicating a level of integration that surpasses typical partnerships.
– Concurrent Security Incidents: The report notes that both CoinsPaid and AlphaPo experienced a cyber breach simultaneously in July 2023, suggesting a coordinated response to manage the fallout from this incident.
– Financial Interdependence: The whistleblower highlights a financial interdependence between the two companies, with funds and clients being transferred between them without adequate financial transparency, indicating that their financial operations are managed as if they were a single entity.
– Shared Personnel and Communication Channels: Discussions regarding personnel are conducted in a shared context, with a dedicated Slack channel for deliberating client onboarding to either CoinsPaid or AlphaPo. Following the July 2023 hack, it was revealed that the address used for paying CoinsPaid employees was actually receiving funds from AlphaPo, indicating a lack of clear operational boundaries.
– Misleading Narratives: The report claims that CoinsPaid presents itself as distinct from AlphaPo in official communications to external parties, including regulatory authorities, while internally acknowledging their interconnectedness. This dual narrative appears designed to mislead regulators and other stakeholders regarding their actual relationship and operations.
These connections suggest a significant lack of transparency in the operations of both CoinsPaid and AlphaPo, with potential ramifications for legal compliance, regulatory scrutiny, and the integrity of their business practices. The whistleblower’s revelations imply that the relationship between CoinsPaid and AlphaPo is structured to obscure true ownership and control, potentially facilitating illegal or unethical activities under the guise of separation.
Key Individuals Involved
The report identifies several individuals associated with CoinsPaid and AlphaPo, detailing their roles and involvement in the operations of these entities:
– Alexander Horst Riedinger: Officially recognized as the beneficial owner of the CoinsPaid Group, he is reportedly a front for
Belarusian interests.
Maksim Krupyshev: Known as the public face of CoinsPaid and a Ukrainian crypto influencer, he serves as the CEO of CoinsPaid. He is suggested to be managing the company primarily on behalf of a network of Belarusian backers. Additionally, he oversees AlphaPo LLC, another entity mentioned in the investigation.
Ivan Montik: Identified as a significant figure within the CoinsPaid network, he promotes himself as a co-founder of CoinsPaid and the founder of SoftSwiss and Merkeleon, which is beneficially owned by Alexander Riedinger.
Pavel Kashuba: Often referred to as “Pasha,” he was the CFO and co-CEO of CoinsPaid until his departure, which coincided with the emergence of revelations about the company.
Frédéric Hubin: Introduced to Krupyshev through a mutual Ukrainian acquaintance, he was offered a position as a local board member in Estonia for CoinsPaid but resigned in April 2023. His responsibilities included ensuring compliance with new regulatory requirements in Estonia.
Svetlana Prussova: A board member of Dream Finance OÜ, the legal entity operating CoinsPaid in Estonia, she is indicated to have compliance responsibilities and is aware of the overlapping operations between CoinsPaid and AlphaPo.
Violaine Champetier de Ribes Christofle: She is noted as the head of public relations for the Baltics at CoinsPaid. Alongside Prussova, she is mentioned in connection with receiving questionable tax-free cryptocurrency payments from an offshore structure.
Hanna Drabysheuskaya: Identified as one of the individuals responsible for managing payments at CoinsPaid.
Aliaksei Kuzniatsou: Serving as the Head of Treasury at both CoinsPaid and AlphaPo, he is involved in payment processes and may have knowledge of the alleged money laundering operations.
Maria Akulenko: Formerly the Chief Legal Officer of the CoinsPaid Group, her role would have included oversight of legal compliance and corporate governance.
These individuals are portrayed as key players within the organizational framework of CoinsPaid and AlphaPo, with responsibilities ranging from executive management to specific operational roles such as treasury and compliance.
Summary of Key Data on CoinsPaid
Trading Names: CoinsPaid, CryptoProcessing, AlphaPo
Business Activities: Cryptocurrency exchange and OTC desk operations; high-risk cryptocurrency payment processing
Web Domains:
cryptoprocessing.com
coinspaid.com
alphapo.net
Social Media Presence: LinkedIn, Facebook, Instagram, Twitter
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)
Operating Jurisdictions: Estonia, Austria, Cyprus, El Salvador, St. Vincent & The Grenadines
Authorization: FIU crypto license no. FVT000166
Related Individuals:
Alexander Horst Riedinger (Austria)
Ivan Montik
Pavel Kashuba
Maksym Krupyshev (Ukraine)
Andrei Koposov (Georgia)
Frédéric Georges Hubin
Svetlana Prussova
Violaine Champetier de Ribes Christofle
Hanna Drabysheuskaya
Aliaksei Kuzniatsou
Maria Akulenko
PayRate42 Rating: Orange Compliance
This comprehensive overview underscores the serious allegations against CoinsPaid and its connections to AlphaPo, highlighting potential legal and regulatory implications for both entities. The intricate web of relationships and operations raises significant concerns about transparency and compliance within the cryptocurrency sector.
+ There are no comments
Add yours