Allegations by Frederic Hubin Against CoinsPaid
In a recent LinkedIn post, Frederic Hubin, a former executive at CoinsPaid, made serious allegations against the Estonian-based cryptocurrency payment processor. Hubin directed his accusations towards the Estonian Financial Intelligence Unit (FIU), claiming that CoinsPaid was involved in facilitating fraudulent activities and illegal online gambling operations. As an insider who served on the management board from 2020 to 2023, his claims have raised significant concerns regarding the practices and affiliations of CoinsPaid.
Major Accusations
Frederic Hubin alleged that CoinsPaid was involved in fraudulent practices, urging the Estonian FIU to conduct an investigation into the company’s activities. He highlighted the connections between CoinsPaid and N1 Interactive Limited, which was fined €12.6 million by Dutch authorities in 2023 for illegal gambling activities. Additionally, Hubin pointed out CoinsPaid’s affiliations with Austrian-registered A.R. Merkeleon GmbH and the SoftSwiss group, which is led by Ivan Montik and Pavel Kashuba. He also raised concerns about the corporate governance of CoinsPaid, specifically questioning the involvement of the President of CCI France-Estonie in its governance.
Sequence of Events
In 2020, Frederic Hubin joined CoinsPaid and served on the management board. In 2023, N1 Interactive was fined by Dutch regulators, receiving a penalty of €12.6 million. In 2024, Hubin made his allegations public through a LinkedIn post, accusing CoinsPaid of engaging in fraudulent activities.
Connections Within the Industry
Hubin’s allegations also extend to the relationships between CoinsPaid and the SoftSwiss Group. The official owner of CoinsPaid is Alexander Horst Riedinger, an Austrian entrepreneur associated with A.R. Merkeleon GmbH. The SoftSwiss Group, which is led by Ivan Montik and Pavel Kashuba, has connections to both cryptocurrency and gambling activities.
Role of Law Firm Revera
Helen Mourashko, a partner at the Revera law firm and the spouse of SoftSwiss executive Pavel Kashuba, is reportedly responsible for handling the legal affairs of N1 Interactive. According to his CrunchBase profile, Kashuba served as the CFO of SoftSwiss until 2023.
Urgent Need for Regulatory Action
Hubin’s accusations highlight the pressing need for regulatory scrutiny. The Estonian FIU is urged to investigate CoinsPaid’s involvement in facilitating illegal gambling payments and to examine the corporate governance structures, particularly the role of CCI France-Estonie.
Responsibilities of Stakeholders
Industry stakeholders must assess the compliance mechanisms within CoinsPaid and its affiliated entities to ensure that they adhere to financial and regulatory standards.