Frederic Hubin, a former executive at CoinsPaid, made serious allegations against the Estonian-based crypto payment processor in a LinkedIn post. He directed his accusations at the Estonian Financial Intelligence Unit (FIU), claiming that the company facilitated fraudulent activities and was involved in illegal online gambling operations. These allegations, coming from someone who served on the management board from 2020 to 2023, have raised significant concerns about the practices and affiliations of CoinsPaid.

Hubin alleged that CoinsPaid facilitated payments for illicit activities and urged the Estonian FIU to investigate. He highlighted the connections between CoinsPaid and N1 Interactive Limited, which was fined €12.6 million by Dutch authorities in 2023 for illegal gambling activities. Additionally, he noted CoinsPaid’s links to A.R. Merkeleon GmbH, an Austrian-registered entity, and the SoftSwiss group, which is led by Ivan Montik and Pavel Kashuba. Hubin also questioned the involvement of the President of CCI France-Estonie in the governance of CoinsPaid.

In 2020, Hubin joined CoinsPaid and served on the management board. In 2023, N1 Interactive was fined by the Dutch regulator, which imposed a penalty of €12.6 million. In 2024, Hubin made his LinkedIn post accusing CoinsPaid of fraudulent activities.

Hubin’s allegations also extend to the connections between CoinsPaid and the SoftSwiss group. The official owner of CoinsPaid is Alexander Horst Riedinger, an Austrian entrepreneur associated with A.R. Merkeleon GmbH. The SoftSwiss group, led by Ivan Montik and Pavel Kashuba, is linked to crypto and gambling activities. Furthermore, Helen Mourashko, a partner at the Revera law firm and spouse of SoftSwiss executive Pavel Kashuba, reportedly handles the legal affairs of N1 Interactive. Kashuba served as the CFO of SoftSwiss until 2023, according to his CrunchBase profile.

Hubin’s accusations highlight the urgent need for regulatory scrutiny. The Estonian FIU is urged to investigate CoinsPaid’s role in facilitating illegal gambling payments and to examine the corporate governance structures, particularly the involvement of CCI France-Estonie. Industry stakeholders must evaluate the compliance mechanisms within CoinsPaid and its affiliated entities to ensure adherence to financial and regulatory standards.