A few hours ago, the former CoinsPaid executive Frederic Hubin accused the Estonian-based crypto payment processor CoinsPaid of fraudulent activities in a LinkedIn post directed at the Estonian FIU. As an insider, Hubin’s claims add significant weight to ongoing concerns surrounding CoinsPaid and its affiliated entities, including their ties to SoftSwiss and Austrian-registered A.R. Merkeleon GmbH.
Key Points:
- Insider Allegations: Frederic Hubin, a former CoinsPaid executive (2020-2023), accused CoinsPaid of facilitating fraudulent activities and directed the Estonian FIU to investigate.
- Connections to Online Gambling: Hubin highlighted the fine against N1 Interactive Limited, suggesting ties between CoinsPaid and illicit online gambling activities.
- Key Affiliations: CoinsPaid’s ties to Austrian-registered A.R. Merkeleon GmbH and the SoftSwiss group led by Ivan Montik and Pavel Kashuba raise further questions.
- Request for Corporate Accountability: Hubin’s post also called out the President of CCI France-Estonie, responsible for CoinsPaid’s corporate governance.
- FinTelegram’s Investigative History: Past reports have detailed intertwined personal and corporate relationships within this ecosystem, underlining the need for further scrutiny.
Short Narrative:
The LinkedIn post by Frederic Hubin, a former CoinsPaid management board member, has brought allegations of fraudulent practices at the crypto payment processor into the spotlight. Hubin’s tenure at CoinsPaid, from 2020 to 2023, positions him as a critical insider with firsthand knowledge of the company’s operations. His accusations link CoinsPaid to facilitating payments for N1 Interactive Limited, an online gambling operator fined €12.6 million by Dutch authorities in 2023 for illegal activities.
FinTelegram has previously reported on these connections, further shedding light on the murky operations of the crypto and online gambling ecosystem. Hubin’s revelations are particularly concerning when viewed alongside FinTelegram’s prior reports highlighting the close ties between CoinsPaid, A.R. Merkeleon GmbH, its official Ultimate Beneficial Owner Alexander Horst Riedinger, and the SoftSwiss group. Ivan Montik and Pavel Kashuba, key figures in the SoftSwiss ecosystem, have long been associated with questionable practices in the crypto and online gambling sectors. These connections deepen suspicions surrounding CoinsPaid’s activities and its role within this network.
Read our CoinsPaid reports here.
The Role of Law Firm Revera
Moreover, Hubin’s post implies that Helen Mourashko, partner of the Revera law firm (link), handles the N1 Interactive case. Mourashkoa is the spouse of the Merkeleon (CoinsPaid) CFO and SoftSwiss executive Pavel Kashuba. Until 2023, Kashuba has also been the CFO of SoftSwiss, his CrunchBase profile tells. Hubin’s call for the Estonian FIU to investigate underscores the urgency of regulatory action in this case.
Actionable Insight:
Hubin’s allegations should act as a catalyst for heightened scrutiny of CoinsPaid by regulators and industry watchdogs. At the time N1 Interactive was penalized by the Dutch regulator, Hubin was still in the management of CoinsPaid and should, therefore, be able to prove his accusations.
The Estonian FIU must assess these claims promptly, considering CoinsPaid’s significant role in the facilitation of crypto payments for illegal gambling activities. Furthermore, stakeholders should evaluate the corporate governance mechanisms at CoinsPaid, particularly the involvement of CCI France-Estonie’s President in overseeing operations.
Call for Information:
FinTelegram urges insiders and whistleblowers with additional information on CoinsPaid, A.R. Merkeleon GmbH, SoftSwiss, or their executives to come forward. Your insights are vital to uncovering the truth behind these allegations. Submit your tips via Whistle42.com to support transparency and accountability.
