CoinsPaid, a cryptocurrency payment processor, operates through legal entities in Estonia, Lithuania, and El Salvador. The Estonian entity, Dream Finance OÜ, is controlled by Austrian entrepreneur Alexander Horst Riedinger, with Max Krupyshev serving as the CEO. In a recent press release, the company claimed to announce its audited financial results for 2021; however, it did not provide any specific figures.
In the press release dated March 14, 2023, CoinsPaid made several claims regarding its financial performance. It stated that its net income had increased by 411% compared to 2020. Additionally, the company reported a growth in net profitability of 43.64% compared to the previous year. The return on assets (ROA) was said to have increased by 5.89% in 2021. Furthermore, CoinsPaid alleged that users’ funds had tripled in 2021, a claim that was supposedly confirmed by Crowe auditors.
However, there were notable omissions in the announcement. CoinsPaid did not publish the audited financial statements nor provide specific absolute figures. The audit was conducted by Crowe DNW Ltd in Estonia, but the lack of transparency raises concerns.
In February 2023, CoinsPaid had previously reported processing 34 million transactions worth €19 billion. The company claimed to handle 8% of global on-chain Bitcoin transactions and achieved a transaction volume of €3 billion in the fourth quarter of 2022, which marked a 30% increase compared to the same period in 2021.
The announcement regarding CoinsPaid’s 2021 results lacks credibility due to the absence of concrete numbers. The reliance on percentages without absolute data diminishes the value of the claims made in the press release. Key concerns include the lack of transparency, as the audited financial statements were not published, and the over-reliance on percentages, which raises questions about the reliability of the reported data. Additionally, the assertion that CoinsPaid processes 8% of global on-chain Bitcoin transactions warrants further verification.
CoinsPaid operates under various trading names, including CoinsPaid and CryptoProcessing, and engages in business activities such as crypto exchange and OTC desk operations, positioning itself as a high-risk crypto payment processor. The company maintains a presence online through its domains, https://cryptoprocessing.com and https://coinspaid.com, and is active on social media platforms like LinkedIn, Facebook, Instagram, and Twitter.
The legal entities associated with CoinsPaid include Dream Finance OÜ in Estonia, Dream Finance UAB in Lithuania, and Dream Finance S.A. in El Salvador, along with A.R. Merkeleon GmbH in Austria and Skylock Investments Ltd in Cyprus. The jurisdictions in which CoinsPaid operates include Estonia, Austria, Cyprus, and El Salvador, and it holds a crypto license from the Financial Intelligence Unit (FIU) with the number FVT000166. Key individuals related to the company include Alexander Horst Riedinger, Maksym Krupyshev, Andrei Koposov, and Frédéric Georges Hubin. The PayRate42 rating for CoinsPaid is categorized as Orange Compliance.
In conclusion, the absence of concrete numbers in CoinsPaid’s announcement raises doubts about its claims of significant growth in 2021. Without the audited financial statements or specific figures, the press release appears less credible. Users and stakeholders are advised to approach CoinsPaid and its associated brand, CryptoProcessing, with caution.
