Tag: MoonPay

MoonPay, a leading U.S. crypto payments platform focused on high-risk sectors, has acquired Helio, a Solana-based blockchain payment processor, for $175 million, marking the start of what could be a series of strategic mergers in the digital asset space. This acquisition, MoonPay's largest to date, aims to enhance its payment infrastructure and expand its services in the rapidly evolving cryptocurrency payments sector.

We recently found an interesting review on LinkedIn about the apparently illegal online casino Betsolino, published by Digital Marketing Strategist Michael Schmitt. According to the review, Betsolino has been identified as an illegal operation. Therefore, we looked at Betsolino and its payment processors. We discovered red flags and issued an urgent warning.

With the rapid adoption of cryptocurrencies, the global landscape of illicit businesses, particularly in the online gambling sector, has seen a significant expansion. Despite heightened regulatory scrutiny, cryptocurrencies continue to operate beyond national borders, enabling illegal online casinos and gambling platforms to thrive. This phenomenon has created substantial challenges for authorities.

Crypto payments processor MoonPay has laid off 10% of its workforce, citing high-cost structures and lower-than-expected operating margins. This decision comes despite the company’s claim of being financially sound with “years of runway” ahead. However, the cyber rating agency PayRate42 confirmed MoonPay's Orange Risk and Orange Compliance ratings, stating that layoffs in a bull cycle suggest a forward-looking management team.

FinTelegram has consistently flagged the crypto exchange MEXC, placing it on the Red Compliance List due to multiple regulatory warnings and poor customer feedback. We revealed that MEXC processes its FIAT transactions for cryptocurrency purchases via MEXC Estonia OÜ, which holds a crypto license in Estonia. This Estonian entity, in turn, uses Paytend Europe UAB, d/b/a s Paytend, a Lithuanian-regulated e-money institution, to handle FIAT payments through bank transfers.

FinTelegram has already issued several warnings against the crypto exchange MEXC, which is apparently operated by Asians, and has shown how this "Binance-style" crypto exchange operates globally without regulatory permission with millions of customers. Recently, the Spanish CNMV also issued a warning after the German BaFin, the Austrian FMA, the UK FCA and other regulators had already issued warnings. FinTelegram has placed MEXC on the Red Compliance List.

Recent months have witnessed a concerted effort by U.S. authorities, including the Department of Justice, the FinCEN, and regulatory bodies such as the SEC and the CFTC, to clamp down on crypto exchanges flouting financial laws and regulatory norms. However, the landscape in Europe presents a contrasting scenario where exchanges like MEXC continue their operations amidst allegations of illegal activities and regulatory infractions. Recently, the Hong Kong SFC warned against MEXC.

A few weeks ago, we put the crypto exchange Gate.io on our Orange Compliance List due to obvious regulatory problems, and recently, the Austrian Financial Market Authority FMA issued a warning against ClavisChain and in this context also against Gate.io. The FMA failed to provide further explanations in its investor warning. ClavisChain looks like a clone of Gate.io. We advise all traders to exercise extreme caution with ClavisChain and Gate.

The evolution of cybercrime, supercharged by the anonymity and versatility of cryptocurrency, presents a harrowing vista for the future of global financial security. An exhaustive analysis of warnings from top financial regulators—such as the UK's FCA, Spain's CNMV, Germany's BaFin, and Italy's Consob—reveals a chilling trend. Scammers are increasingly leveraging crypto to orchestrate their fraudulent schemes, exploiting its potential to sidestep traditional financial safeguards with unnerving efficiency.

The crypto exchange P2B, which is operated by a company in Lithuania, was placed on the Red Compliance List by FinTelegram a few weeks ago due to identified compliance violations. Among other things, P2B allows the listing and trading of crypto tokens that clearly qualify as security tokens according to the applicable criteria. Recently, the Canadian regulator BCSC in British Columbia issued a warning against P2B.

FinTelegram has already issued several warnings against the crypto exchange MEXC. The points we criticized have still not been resolved. The website does not provide any information on the operators or regulations. These are essential details whose absence automatically results in a red flag. We found the Lithuanian EMI Paytend to be the payment processor for bank transfers. On Trustpilot, MEXC secured a 1.9-star rating with a poor trust level. Here is our update.

We've uncovered a concerning trend in our recent analysis of the online casinos and gambling sector, particularly focusing on the high-risk aspects of these activities and their associated payment processors. Many payment processors, including those regulated by financial authorities, seem to be unknowingly engaging in unauthorized and, consequently, illegal online gambling operations. FinCrime Observer published an interesting report about this scene and its payment processors.