In explosive testimony delivered by SoftSwiss founder Ivan Montik during the Wirecard trial, the true scope of a massive unregulated financial scheme has been laid bare. Far from being just a B2B service provider, SoftSwiss and its offshore affiliates, including Direx N.V. (now Dama N.V.), have been operating an intricate, unlicensed payment structure that funneled hundreds of millions of euros without regulatory oversight. Despite Montik’s repeated assertions that his operations did not involve Payment Service Provider (PSP) activities, the court saw through his defense, sending a strong message about the opaque world of iGaming and payments.
The Shadow Financial Web
For years, investigations by FinTelegram have unearthed the hidden connections between SoftSwiss, Direx N.V., and Wirecard. What Montik’s testimony confirmed was the degree to which these entities were interconnected, each one serving as a cog in a larger machine that was processing significant sums of money with no regulatory transparency. Montik’s description of his business model as a simple “B2B provider” who “forwarded income” is a far cry from the reality exposed in court: a shadowy payment intermediary system operating out of Curaçao and Malta.
A Game of Denial and Deception
The courtroom drama reached a crescendo when Montik attempted to deny his role as a PSP (Payment Service Provider). The presiding judge, clearly well-versed in the subject matter, shot back: “I know by now what a PSP is.” This was a slap in the face to Montik’s defense and a clear admission that SoftSwiss, Direx N.V., and their affiliates were engaging in payment intermediation on a massive scale, yet operating with minimal oversight. This revelation sends shockwaves through the European gaming industry, which has been grappling with transparency issues for years.
The 422 Million Euro Question
Even more troubling was the revelation of a staggering €422 million in transfers into Direx accounts, which were then redistributed in “rounded” payments. This is a textbook example of money laundering or at the very least, shady financial practices designed to obscure the true origin of funds. Montik’s feigned ignorance of the payments, while pointing the finger at an unnamed Finance Director, seems increasingly implausible. His attempt to downplay his company’s involvement in this multi-million euro operation paints a troubling picture of a man either deeply complicit in or woefully unaware of the systemic financial misconduct occurring under his watch.
A Regulatory Dilemma
The fallout from Montik’s testimony has exposed a crucial failure by regulators, particularly the Malta Gaming Authority (MGA). SoftSwiss, through its licensee Stable Aggregator Limited, is currently operating under the MGA’s purview. But Montik’s admission that the operation was closely linked to offshore entities like Dama N.V. throws the integrity of this regulatory framework into question. The MGA’s license appears to have been used as a shield to legitimize what was effectively an offshore financial operation that flouted European regulations.
Conclusion: A Call for Accountability
Montik’s testimony leaves no room for doubt: SoftSwiss was not just a provider of B2B services but an active player in a high-risk, unregulated financial system that bypassed international regulatory scrutiny. This raises critical questions about the role of financial institutions, regulators, and governments in allowing such operations to thrive unchecked. The Wirecard scandal has only just begun to unravel, and if regulators do not act swiftly and decisively, the floodgates will open for more financial malfeasance in the iGaming sector.
