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 operated 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 allegedly 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

1. Financial Misconduct and Bankruptcy:
– The company publicly acknowledged 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.

2. Involvement in Money Laundering:
– CoinsPaid is accused of laundering hundreds of millions of euros annually.
– Its operations allegedly involve a network of Belarusian expatriates, focusing on offshore and illegal gambling platforms.
– The company has been highlighted for non-compliance with local labor and tax regulations.

3. Dubious Management Practices:
– Maksim Krupyshev, a Ukrainian crypto influencer and CEO of CoinsPaid, is accused of fronting for Belarusian operators.
– There are allegations of manipulation of corporate structures to facilitate financial crimes without direct corporate implications.

4. Regulatory Evasion and Compliance Issues:
– The company is said to exploit regulatory loopholes in Estonia and other jurisdictions.
– It has established front companies to obscure operations and avoid scrutiny.

5. Impact and Scope of Operations:
– Whistleblower reports suggest broader risks to the financial system, akin to previous crises in the crypto sector.
– There are allegations of weak regulatory oversight in Estonia, 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

– Both companies utilize the same technology and share managerial staff.
– They have a common compliance department, which raises potential conflicts of interest and confidentiality breaches.
– Both entities experienced simultaneous security breaches in July 2023, suggesting deep operational integration.
– 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 via shared Slack channels.
– 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. Their roles suggest involvement in the companies’ questionable operations:

– Alexander Horst Riedinger: Beneficial owner of CoinsPaid Group.
– Maksim Krupyshev: CEO of CoinsPaid, alleged front for Belarusian interests.
– Ivan Montik: Co-founder of CoinsPaid and founder of SoftSwiss.
– Pavel Kashuba: Former CFO and co-CEO of CoinsPaid.
– Frédéric Hubin: Former board member in Estonia for CoinsPaid.
– Svetlana Prussova: Board member of Dream Finance OÜ and compliance head.
– Violaine Champetier de Ribes: Public relations head for the Baltics.
– Hanna Drabysheuskaya: Payments handler at CoinsPaid.
– Aliaksei Kuzniatsou: Head of Treasury at CoinsPaid and AlphaPo.
– Maria Akulenko: Former Chief Legal Officer of CoinsPaid Group.

Business Metrics and Entities

CoinsPaid operates under various 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, such as cryptoprocessing.com, coinspaid.com, and alphapo.net, and is active on social media platforms like 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 it operates include Estonia, Austria, Cyprus, El Salvador, and St. Vincent & The Grenadines.