Overview of CoinsPaid and CryptoProcessing

CoinsPaid is a prominent entity in the cryptocurrency payment industry, operating through various legal entities in countries such as Estonia, Lithuania, and El Salvador. The company also oversees CryptoProcessing, a platform recognized for its strong presence in high-risk sectors, particularly iGaming and gambling.

In the third quarter of 2024, CryptoProcessing reported a turnover of €2.23 billion, which represents a 27% increase compared to the previous year, and it processed more than 2.52 million transactions. The Chief Financial Officer, Hanna Drabysheuskaya, emphasized that the benefits of cryptocurrencies—such as low transaction costs, rapid processing times, and the ability to facilitate cross-border transactions—are contributing to their growing global adoption.

Corporate Structure and Key Stakeholders

The corporate structure of CoinsPaid features several notable individuals. Alexander Horst Riedinger from Austria is the main shareholder through A.R. Merkeleon GmbH. Max Krupyshev, the CEO from Ukraine, holds a stake via Skylock Investments Ltd. He is also recognized as a crypto influencer and plays a crucial role in shaping the company’s strategy. Ivan Montik from Belarus is alleged to be a co-founder and a significant figure, as well as the founder of SoftSwiss, a leading provider in the crypto and iGaming industries.

Additionally, reports have linked CoinsPaid to Georgian billionaire Paata Gamgoneishvili and Roland Yakovlevich Isaev, who are allegedly associated with SoftSwiss and have been accused of involvement in international money laundering activities benefiting Russian interests.

Cybersecurity Challenges

Recent cyberattacks have raised concerns regarding the financial stability of CoinsPaid. On January 5, 2024, the company suffered a loss of $7.5 million due to a hacking incident. Earlier, on July 22, 2023, a more significant attack led to losses amounting to $37.3 million, which was reportedly carried out by the Lazarus Group.

Despite these financial setbacks, CoinsPaid has reassured its users about the safety of their funds. However, critics have raised alarms about potential underlying financial issues, including risks related to solvency.

Allegations and Regulatory Concerns

Anonymous sources and platforms such as CoinsPaidScam.com have made several accusations against CoinsPaid. These include claims of financial misconduct, where the $37 million loss has sparked rumors of insolvency and hidden liabilities. There are also allegations that CoinsPaid may be facilitating money laundering for offshore gambling companies through networks in Eastern Europe. Furthermore, while Krupyshev is publicly recognized as the face of the company, there are rumors that Belarusian interests, including Gamgoneishvili and Isaev, may exert actual control.

Connections to AlphaPo

It is alleged that CoinsPaid and AlphaPo operate as a unified entity, sharing IT infrastructure and compliance teams. There have been overlapping security breaches reported in 2023, as well as interconnected financial operations that lack proper accountability. Investigative reports by Shana Dovi have highlighted these connections, suggesting coordinated efforts to avoid regulatory oversight.

Online Reputation and Investigative Challenges

Websites like CoinsPaidScam.com and investigations by platforms such as Global Economy Edition have criticized CoinsPaid’s operations, alleging connections to sanctions evasion and organized crime. Previous investigations, including those conducted by the Bulgarian outlet Bigol, have further substantiated these claims.

Conclusion

The growth of CoinsPaid in high-risk sectors highlights its significant role in the cryptocurrency landscape. However, the ongoing allegations of misconduct, shadow ownership, and vulnerabilities to hacking necessitate a comprehensive regulatory investigation to safeguard the integrity of financial markets.

Key Company Data

CoinsPaid operates under various trading names, including CoinsPaid, CryptoProcessing, and AlphaPo. Its activities encompass crypto exchange, OTC desk services, and payment processing. The company is active in jurisdictions such as Estonia, Austria, Cyprus, and El Salvador, with legal entities including Dream Finance OÜ in Estonia and Dream Finance UAB in Lithuania. Key individuals associated with the company are Alexander Horst Riedinger, Max Krupyshev, and Ivan Montik. CoinsPaid maintains a presence on social media platforms like LinkedIn, Facebook, Instagram, and Twitter.

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