CoinsPaid: Crypto Payment Processor Investor Briefing

tamir
Tue, 23 Sep 2025 14:31:08 +0000
Crypto Compliance, Crypto Payment Processor Watch, ticker, Alexander Horst Riedinger, CoinsPaid, Cryptoprocessing, Dream Finance, Frederic Hubin, Ivan Montik, Merkeleon, Pavel Kashuba, Softswiss

Crypto Payment Processor Watch Series

Executive Summary

CoinsPaid represents one of the most concerning cases in the crypto payment processing sector, where significant market presence masks extensive compliance violations and potential criminal activity. Operating as the self-proclaimed “#1 crypto payment gateway for iGaming,” the Estonia-licensed company processes over €3 billion annually while allegedly facilitating money laundering, illegal gambling, and sanctions evasion across multiple jurisdictions.

Critical Investment Warning: FinTelegram’s comprehensive investigations reveal systematic financial misconduct, including potential insolvency, shadow ownership by sanctioned entities, and active intimidation of whistleblowers. The company’s deep integration with unlicensed gambling operations and alleged document forgery create unacceptable regulatory and reputational risks.

Company Overview

Corporate Structure and Shadow Leadership

CoinsPaid operates through Dream Finance OÜ, Dream Finance UAB, and Dream Finance US LLC. Until recently, Dream Finance S.A. in El Salvador was also listed as the operator; however, this entity has since been removed from the website. The company maintains a complex multinational structure that obscures actual ownership and control.

Official Leadership:

CEO: Max Krupyshev (Ukraine) – Public face and crypto influencer

Beneficial Owner: Alexander Horst Riedinger (Austria) – Alleged frontman

Shadow Control: Ivan Montik (Belarus) – Co-founder of SoftSwiss and alleged true controller beside Pavel Kashuba and Dzmitry Yaikau.

Key Concern: Multiple sources indicate Riedinger serves as a front for Belarusian interests, with Ivan Montik wielding actual control over operations. This shadow ownership structure enables sanctions evasion and regulatory manipulation.

Business Model and Market Dominance

CoinsPaid operates multiple brands including CoinsPaid.com, CryptoProcessing.com, and the secretly integrated AlphaPo, creating a dominant position in high-risk payment processing. The company claims to handle 8% of global on-chain Bitcoin flows and processes over 8 million monthly transactions for 500+ gambling operators.

Operational Scale:

€3 billion processed in Q4 2022

500+ iGaming operators served

150+ countries supported

100+ employees across multiple jurisdictions

Key Business Metrics

Metric | Value
Trading Names | CoinsPaid, CryptoProcessing, AlphaPo
Founded | 2018
Headquarters | Tallinn, Estonia
Legal Entities | https://fintelegram.com/tag/dream-financeDream Finance OÜ, Dream Finance UAB, Dream Finance US LLC, Dream Finance S.A.
CEO | Max Krupyshev (Ukraine)
Beneficial Owner (UBO) | Alexander Horst Riedinger (Austria)
Key Figures | Ivan Montik, Pavel Kashuba, Dzmitry Yaikau
Total Processing Volume (Q4 2022) | €3 Billion
Monthly Transaction Volume | 8+ Million Transactions
Merchant Accounts | 500+ Operators
Countries Supported | 150+
Cryptocurrencies Supported | 20+
Fiat Currencies | 40+
Employees | 100+
License – Estonia | FIU Estonia CASP License
License Number | FVT000166
Business Model | Crypto Payment Gateway & Exchange
Target Industries | iGaming, Online Gambling, High-Risk
Major Security Incidents | $37.3M Hack (July 2023), $7.5M Hack (2024)
Former Brand Names | AlphaPo (integrated operations)
Related Entities | SoftSwiss, Merkeleon GmbH
Global Bitcoin Flow Share | 8% of Global On-Chain Bitcoin Flows (allegedly)

The impressive growth metrics mask fundamental compliance failures and potential insolvency issues that threaten the company’s operational viability.

Regulatory Framework and License Status

Current Authorization

CoinsPaid holds an Estonian CASP license (FVT000166) from the Financial Intelligence Unit FIU), renewed in September 2023 after 15 months of regulatory scrutiny. The company invested €5 million in share capital to meet Estonia’s stringent requirements, positioning itself as a compliant operator in the European market.

Regulatory Claims:

Estonia FIU licensed under new CAMA framework

Regular third-party security and compliance audits

AML/KYC compliance systems

Preparation for EU MiCAR implementation

Critical Compliance Failures

Despite regulatory licensing, FinTelegram investigations reveal systematic violations that contradict the company’s compliance narrative:

Issue | Description | Impact
Money Laundering Operations | Laundering hundreds of millions of euros annually through crypto | Critical
Illegal Gambling Facilitation | Processing payments for unlicensed gambling operators globally | Critical
Financial Insolvency/Negative Equity | Operating with negative equity despite €37M+ in losses | High
Belarusian Shadow Control | Austrian UBO Riedinger fronting for Belarusian interests | Critical
SoftSwiss Casino Integration | Deep integration with unlicensed SoftSwiss casino platforms | High
AlphaPo Hidden Integration | Secret operational merger with AlphaPo payment processor | High
Regulatory Evasion | Exploiting regulatory loopholes across multiple jurisdictions | High
Document Forgery Allegations | Alleged forged signatures in Cyprus court documents | Critical
Whistleblower Intimidation | Systematic campaign against former director Frédéric Hubin | Medium
Tax Fraud Allegations | Non-compliance with local tax regulations across EU | High
Sanctions Evasion | Facilitating payments in sanctioned countries (Russia/Belarus) | Critical
Corporate Structure Manipulation | Using shell companies to obscure true ownership structure | High

The most damaging revelations involve CoinsPaid’s secret operational merger with AlphaPo, creating a single entity that processes payments for unlicensed gambling operations while maintaining separate public identities to deceive regulators.

Financial Misconduct and Insolvency Concerns

Security Breaches and Financial Losses

CoinsPaid has suffered multiple devastating security incidents:

July 2023: $37.3 million theft attributed to Lazarus Group (Source: CoinsPaid)

2024: Additional $7.5 million breach

Total Losses: Over $44 million in confirmed thefts

Insolvency Indicators: Whistleblower reports suggest the company operates with negative equity, continuing operations despite being technically bankrupt. The discrepancies between publicly reported and actual losses raise serious questions about financial transparency.

Money Laundering Operations

Former director Frédéric Hubin and other whistleblowers allege CoinsPaid launders hundreds of millions of euros annually through cryptocurrency transactions. The operation allegedly involves:

Network of Belarusian expatriates across European countries

Processing payments for offshore and illegal gambling platforms

Systematic evasion of AML/KYC requirements

Tax fraud across multiple jurisdictions

The SoftSwiss Connection

Unlicensed Gambling Ecosystem

CoinsPaid‘s most significant compliance failure involves its deep integration with SoftSwiss, a Belarus-founded iGaming platform operator. This relationship enables unlicensed gambling operations across regulated European markets through brands including:

Rabidi

Dama

Hollycorn

N1 Interactive

Regulatory Violations: These platforms operate without proper licenses in regulated markets, with CoinsPaid providing the payment infrastructure that enables continued operations despite regulatory warnings.

Download our report on Rabidi, Softswiss and CoinsPaid here.

Sanctions Evasion Concerns

The Belarus connection raises serious sanctions compliance issues, particularly given:

Ivan Montik‘s role as SoftSwiss founder and CoinsPaid co-founder

Operations in sanctioned countries including Russia and Belarus

Use of Austrian fronting to obscure Belarusian control

Processing payments for platforms serving sanctioned jurisdictions

Whistleblower Intimidation and Document Forgery

The Frédéric Hubin Case

Former CoinsPaid director Frédéric Hubin‘s explosive allegations have triggered a systematic intimidation campaign. Hubin claims:

CoinsPaid operates with negative equity

Systematic money laundering operations

Belarusian shadow control of operations

Processing payments for illegal SoftSwiss casinos

Corporate Retaliation: CoinsPaid filed a criminal complaint against Hubin in Estonia, alleging that he had embezzled funds. The Estonian police carefully investigated this complaint and concluded that Hubin had not committed any criminal acts.
FinTelegram analyzed the police statement and found that Hubin had apparently tried to protect CoinsPaid from a possible hacker attack. In this respect, the action taken against Hubin can be considered an attempt at intimidation.

Document Forgery Allegations

Most concerning are allegations that CoinsPaid participated in document forgery for Cyprus court proceedings. FinTelegram reports that CoinsPaid co-signed documents with Payabl (another high-risk processor) containing allegedly forged signatures in an attempt to obtain injunctions against investigative reporting.

Risk Assessment and Investment Implications

Regulatory Enforcement Risk

CoinsPaid faces potential enforcement actions across multiple jurisdictions:

European Union: MiCAR implementation increases scrutiny of CASP operations, particularly those serving unlicensed gambling
Estonia: Regulatory review of license renewal given mounting compliance concerns
Austria: Investigation of Alexander Riedinger’s fronting activities
Multiple Jurisdictions: AML/sanctions investigations related to Belarusian connections

Operational Sustainability

The company’s business model depends on relationships that violate regulatory frameworks:

Over 70% of business derived from gambling operations

Many clients operate without proper licenses

Shadow ownership structure enables regulatory evasion

Multiple security breaches demonstrate operational vulnerabilities

Reputational Contamination

Association with CoinsPaid creates cascading reputational risks:

Regulatory scrutiny for partner institutions

Sanctions compliance concerns for financial counterparties

AML violations for correspondent banking relationships

Professional liability for service providers

Market Position and Competitive Analysis

Industry Leadership Claims

CoinsPaid claims market leadership in crypto iGaming payments, processing €3 billion annually with 500+ operator clients. However, this dominance relies on serving unlicensed operators that compliant processors avoid.

Competitive Vulnerabilities:

Business model depends on regulatory arbitrage

Client base consists primarily of high-risk operators

Shadow ownership creates sanctions compliance issues

Multiple security breaches demonstrate operational weakness

Fee Structure and Business Economics

CoinsPaid offers competitive processing fees below 1% with no monthly charges or rolling reserves. However, the low-cost model depends on:

Inadequate compliance investment

Regulatory arbitrage through Estonian licensing

Serving clients other processors reject

Investment Recommendation

Risk Rating: CRITICAL – AVOID

CoinsPaid presents unacceptable risks that disqualify it from any legitimate investment consideration:

Primary Disqualifying Factors:

1. Criminal Enterprise Allegations: Systematic money laundering and sanctions evasion

2. Financial Insolvency: Operating with negative equity following major losses

3. Shadow Ownership: Belarusian control through Austrian fronting arrangement

4. Document Forgery: Alleged participation in legal document manipulation

5. Whistleblower Intimidation: Systematic campaign against former executives

6. Regulatory Violations: Enabling unlicensed gambling across regulated markets

Enforcement Prediction

Given the severity and scope of violations, CoinsPaid faces imminent regulatory action:

License revocation in Estonia likely within 12 months

Criminal investigations probable in multiple jurisdictions

Civil forfeiture actions targeting laundered proceeds

Sanctions designation possible for shadow controllers

Industry Impact and Systemic Risk

Contagion Concerns

CoinsPaid’s operations create systemic risks for the cryptocurrency ecosystem:

Undermines regulatory confidence in licensed operators

Creates compliance contamination for partner institutions

Demonstrates inadequacy of current licensing frameworks

Validates regulatory concerns about crypto payment processors

Regulatory Response

The CoinsPaid case will likely accelerate regulatory tightening:

Enhanced beneficial ownership disclosure requirements

Stricter AML/KYC enforcement for crypto processors

Increased sanctions compliance scrutiny

Coordinated international enforcement actions

Whistleblower Call to Action

The CoinsPaid investigation demonstrates the critical importance of insider information in exposing financial crime. Current and former employees, business partners, and clients with knowledge of CoinsPaid‘s operations are encouraged to provide confidential information through FinTelegram’s secure whistleblower platform.

Specific Information Sought:

Financial records demonstrating insolvency or losses

Documentation of money laundering operations

Evidence of sanctions evasion activities

Communications regarding document forgery

Internal records of shadow ownership arrangements

Secure Reporting: Whistleblowers can safely submit information regarding CoinsPaid and related entities through Whistle42’s secure platform: https://whistle42.com

Conclusion

CoinsPaid represents a textbook case of how cryptocurrency payment processors can exploit regulatory gaps to facilitate criminal activity while maintaining a veneer of compliance. The company’s Estonian license and professional marketing mask an operation allegedly controlled by sanctioned interests, designed to launder money and evade international sanctions.

Investment Verdict: CoinsPaid is unsuitable for any legitimate investment or business relationship. The combination of criminal enterprise allegations, financial insolvency, shadow ownership, and active enforcement risks creates unacceptable exposure for any associated party.

The case serves as a critical warning about the cryptocurrency payment sector’s vulnerabilities and the need for enhanced regulatory oversight. Investors, financial institutions, and service providers must implement rigorous due diligence procedures to avoid contamination from operations like CoinsPaid.

Final Assessment: CoinsPaid should be treated as a high-risk criminal enterprise masquerading as a legitimate financial services provider. Any association with the company or its principals creates immediate legal, regulatory, and reputational jeopardy.

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This investor briefing is based on investigative reports, regulatory filings, and publicly available information. The serious nature of the allegations requires independent verification through appropriate legal and regulatory channels.