Legal Challenges in Online Casinos, Cryptocurrency Exchanges, and Crypto Processing

SoftSwiss and its associated entities, including CoinsPaid, AlphaPo, Merkeleon, and Dream Finance, have faced numerous allegations related to money laundering, sanction evasion, and fraudulent activities. Prominent figures such as Ivan Montik, Max Krupyshev, Pavel Kashuba, Dmitry Yaikov, Roland Yakovlevich Isaev, and Paata Gamgoneishvili are central to these controversies.
The Network of Companies and Their Legal Troubles

Regulatory Scrutiny

Operating in the online casino market presents significant legal challenges. SoftSwiss, through its alleged parent company Dama NV, has incurred multimillion-dollar fines for failing to comply with gambling regulations.

Corporate Structure and Connections

Dama NV has strong ties to Direx NV, another major player in the gambling industry, which was investigated by the Australian Communications and Media Authority (ACMA) in 2019. The leadership of Direx NV includes Ivan Montik and Maksim Max Trafimovich, who are listed as directors and owners, with legal representation provided by REVERA, a firm closely connected to executives at SoftSwiss.

Crypto Processing Scandals

Numerous individuals associated with these companies, primarily from Belarus, have been accused of facilitating cryptocurrency transactions for the Russian market. These activities are believed to help circumvent sanctions while obscuring illicit financial trails.
Key Legal Cases

Australian Investigations (2019)

Direx NV was investigated by the ACMA for operating unlicensed interactive gambling services and failing to protect players. The legal representation for this case was provided by REVERA, led by Helen Mourashko, who has ties to Pavel Kashuba, the CFO of SoftSwiss.

Dutch Regulatory Actions (2021-2023)

In 2021, the KSA imposed a fine of €500,000 on N1 Interactive Ltd., the operator of the Betchan website, for unauthorized gambling services, lack of age verification, and inactivity fees. In 2023, the KSA levied a much larger fine of €12.6 million due to repeated violations despite previous penalties. Following these regulatory actions, the websites were rendered inaccessible in the Netherlands.
Allegations Against Individuals

Links to Criminal Networks

Ivan Montik and his associates, including Roland Yakovlevich Isaev and Paata Gamgoneishvili, have been linked to illegal activities such as drug trafficking, Forex scams, and unlicensed gambling. Despite publicly distancing themselves from these activities, financial transactions suggest ongoing connections with criminal organizations.

Use of Bribery

Reports indicate that SoftSwiss and its affiliates have employed bribery to evade regulatory scrutiny and lessen legal repercussions.
Unanswered Questions

Oversight of Profits

The companies claim to have generated a profit of €13 billion. However, there are lingering questions regarding who oversees these financial activities and whether there are hidden connections between these profits and illegal operations.

Future Regulatory Actions

There is uncertainty about what steps international authorities will take to address the activities of SoftSwiss and its network, especially considering the mounting fines and evidence of misconduct.
Conclusion

The network involving SoftSwiss, CoinsPaid, and associated entities illustrates the complex intersection of online gambling, cryptocurrency processing, and organized crime. Despite facing fines and legal actions in jurisdictions like Australia and the Netherlands, the broader network continues to operate, highlighting the urgent need for more stringent international oversight.
Overview of the SoftSwiss Case

A comprehensive investigation by Bavarian broadcaster BR has revealed critical connections between Wirecard and Berlin-based SoftSwiss, which is led by Belarusian-born Ivan Montik. As part of BR’s “Gambling without Rules” series, the report highlights SoftSwiss’ significant role in operating illegal online casinos targeting Germany. These findings, supported by earlier research from the Scam-Or Project and the Australian regulator ACMA, expose a sophisticated and concealed gambling network spanning Malta, Cyprus, Curaçao, and Germany.
Key Findings

SoftSwiss’ Role in Illegal Gambling

Founded by Ivan Montik, SoftSwiss is identified as a major operator of illegal online gambling platforms with ties to Berlin.

Wirecard’s Involvement

SoftSwiss and its associated entity Direx N.V. (now Dama N.V.) processed over €61 million through Wirecard, which collapsed in 2020.

Australian Regulator ACMA’s Confirmation

The ACMA identified Ivan Montik and Maksim Trafimovich as key figures behind Direx N.V., which operated numerous illegal platforms.

Complex Ownership Structures

Transfers between N1 Interactive Ltd (Malta) and Dama N.V. (Curaçao) suggest deliberate efforts to conceal ownership and evade taxes.

Jan Marsalek’s Role

The involvement of former Wirecard executive Jan Marsalek raises suspicions due to his direct requests for financial reports from SoftSwiss.

The SoftSwiss Network

According to BR’s report, Ivan Montik operates SoftSwiss with a global network of connections. The SoftSwiss website indicates operations by Stable Aggregator Limited, previously known as N1 Aggregator Limited, which is licensed by the Malta Gaming Authority (MGA).

Structure of the SoftSwiss Network

The SoftSwiss network comprises several entities across different jurisdictions, each playing a specific role in the overall operation:

Stable Aggregator Ltd in Malta serves as the main operating entity.
N1 Interactive Ltd, also based in Malta, functions as a gambling operator that has faced fines from Dutch regulators.
Dama N.V. in Curaçao operated the former Direx N.V.
Befree Ltd in Cyprus has ownership ties to Montik and Kashuba.
True Infrastructure Ltd in North America supports the network’s operations.

This network includes companies in Cyprus, Austria, Lithuania, and the Americas, often managed through nominee arrangements. The law firm REVERA, where Helen Mourashko (the wife of SoftSwiss executive Pavel Kashuba) is a partner, plays a crucial role in supporting these operations.
Wirecard’s Collapse and Implications

SoftSwiss’ dealings with Wirecard are particularly noteworthy, with insolvency documents revealing transactions worth €61 million in 2018. Jan Marsalek, a former Wirecard COO and alleged Russian operative, personally requested financial reports from SoftSwiss in 2020, shortly before he fled prosecution.

Financial Transactions Overview

In 2018, SoftSwiss processed €61 million through Wirecard. In 2019, N1 Interactive Ltd made additional transfers to Dama N.V., although the amounts remain undisclosed.
Australian Regulator ACMA Findings

The ACMA’s investigation confirmed the leadership roles of Ivan Montik and Maksim Trafimovich in Direx N.V. These findings align with court documents from the British Virgin Islands, which link Montik and Kashuba to Befree Ltd, a Cyprus-based operator of illegal casinos.
Regulatory Challenges

Despite the mounting evidence against these operations, German regulators, such as the GGL, face significant challenges in addressing illegal gambling activities. Measures like IP blocking and payment restrictions are frequently circumvented by overseas operators. The GGL has confirmed that SoftSwiss does not hold a license in Germany and has not applied for one.
Conclusion and Call to Action

The investigation by BR, supported by research from the Scam-Or Project, uncovers a global network of illegal gambling schemes. The findings implicate SoftSwiss and its affiliates, emphasizing the urgent need for regulatory intervention. As the landscape of online gambling and cryptocurrency processing continues to evolve, it is crucial for international authorities to implement stricter regulations and oversight to combat these illicit activities effectively.