The CoinsPaid Group and Its Network of Entities
Investigative reports by Shana Dovi on Medium have uncovered serious allegations against CoinsPaid, an Austrian crypto payment processor that operates under Dream Finance OÜ in Estonia. The report details a complex web of financial misconduct, fraud, and regulatory evasion that is allegedly orchestrated by the company’s management and shadow stakeholders. Notably, the Austrian beneficial owner is reportedly acting as a frontman for interests from Belarus.
A Brief Overview of CoinsPaid
CoinsPaid functions through legal entities located in Estonia, Lithuania, and El Salvador. The primary operating entity, Dream Finance OÜ, possesses a crypto license in Estonia and is controlled by Austrian entrepreneur Alexander Horst Riedinger, with Maksim Krupyshev serving as CEO. Additionally, another associated brand, CryptoProcessing, is also managed 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 the public acknowledgment of a $37 million loss due to a hack, which contradicts earlier reports of smaller losses. There are suggestions of potential bankruptcy despite ongoing operations, as internal financial assessments indicate significant negative equity.
Furthermore, CoinsPaid is accused of involvement in money laundering, allegedly laundering hundreds of millions of euros annually. The operations are said to involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms, and there are concerns regarding non-compliance with local labor and tax regulations.
Dubious management practices are also highlighted, with Maksim Krupyshev, a Ukrainian crypto influencer and CEO of CoinsPaid, accused of acting as a front for Belarusian operators. The manipulation of corporate structures is alleged to facilitate financial crimes without direct corporate implications.
Additionally, there are claims of regulatory evasion and compliance issues, including the 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, reminiscent of previous crises in the crypto sector. Allegations of weak regulatory oversight in Estonia are also noted, particularly concerning 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 indicate operational and managerial overlaps, raising concerns about transparency and compliance.
Key points of connection include the shared technology and management between the two companies, as they utilize the same technology and share managerial staff. A common compliance department raises potential conflicts of interest and confidentiality breaches. Both entities experienced simultaneous security breaches in July 2023, suggesting deep operational integration.
Moreover, funds and clients appear 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 through shared Slack channels. Despite presenting themselves as separate entities in official narratives, CoinsPaid internally acknowledges their unity, raising fronting allegations.
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 is mentioned as the former CFO and co-CEO of CoinsPaid, while Frédéric Hubin is noted as a former board member in Estonia for CoinsPaid. Svetlana Prussova serves as a board member of Dream Finance OÜ and is the compliance head. Violaine Champetier de Ribes is the public relations head for the Baltics, and Hanna Drabysheuskaya is identified as a payments handler at CoinsPaid. Aliaksei Kuzniatsou is the head of Treasury at both CoinsPaid and AlphaPo, and Maria Akulenko is the former Chief Legal Officer of the CoinsPaid Group.
Business Metrics and Entities
CoinsPaid operates under various trading names, including CoinsPaid, CryptoProcessing, and AlphaPo. The business activities encompass crypto exchange, OTC desk services, and high-risk payment processing. The domains associated with these operations include cryptoprocessing.com, coinspaid.com, and alphapo.net. The company maintains a presence on social media platforms such as LinkedIn, Facebook, Instagram, and Twitter.
The legal entities involved in these operations 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 they operate include Estonia, Austria, Cyprus, El Salvador, and St. Vincent & The Grenadines. CoinsPaid
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