Compliance Update: CoinsPaid – From Deep Loss to €24m Profit!

Charlene Lensburg
Fri, 07 Nov 2025 14:10:49 +0000
Compliance, Crypto Payments, Reviews & Ratings, ticker, A.R. Merkeleon, Alexander Horst Riedinger, AlphaPro, CoinsPaid, Cryptoprocessing, Dream Finance, Dream Finance US, Dream Payments, Dzmitry Yaikau, Hanna Drabysheuskaya, Ivan Montik, Maksym Krupyshev, Max Krupyshev, Pavel Kahsuba, Softswiss

Dream Finance OÜ, the Estonian core entity behind the CoinsPaid/CryptoProcessing brands, has published its audited 2024 financials. The numbers show a spectacular turnaround from a large 2023 loss to a strong profit. It is also noteworthy that Dream Finance UAB in Lithuania also achieved an impressive profit of just over €1 million in 2024, with revenues of slightly more than €1.9 million.

Business profile & volumes

Dream Finance OÜ has been operating since 2019 as a crypto payment processor under the brands CryptoProcessing (B2B) and CoinsPaid (B2C). Its services include virtual wallets, crypto–fiat conversion, SaaS licensing of its processing platform, cross-chain deposit recovery and OTC trading.

Processed transaction volume rose from €7.9bn in 2023 to €9.1bn in 2024 (≈14% growth), indicating continued client demand despite security incidents and regulatory headwinds.

Download the Financial Statements 2024 here.

2024 in Estonia Swing Back Into Profit

Revenue (sales): €32.37m (2023: €25.18m) – +29%

Other operating income: €14.02m (2023: €8.44m), largely from FX and crypto valuation gains (~€12.7m)

Operating result: +€21.83m (2023: –€24.14m)

Net result: +€23.10m (2023: –€24.13m)

Equity: +€10.06m (2023: –€13.03m)

This means roughly 50% net margin on total operating income (~€46.4m) – an extremely high profitability level driven not only by fees, but also by crypto and FX price effects.

2024 in Lituania: +50% Net Margin

The Lithuanian subsidiary, Dream Finance UAB, likewise reports an extraordinary improvement in 2024, with a profit of just over €1 million on revenues of slightly more than €1.9 million. In 2023, the same entity recorded less than €30,000 in revenue and a loss of just under €10,000, indicating a very small-scale operation. The 2024 figures therefore imply a gross profit margin of around 52% in Lithuania alone.

Taken together, the Estonian and Lithuanian entities of Dream Finance generate more than €24 million in net profit for 2024, corresponding to a group-wide profit margin in excess of 50%—an unusually high level for a crypto payment processor.

Hacks, Losses & Client Fund Coverage

The management report confirms two major hacks:

A 2023 attack with a loss of ~€39.95m, shown as “incident-related loss” in 2023, other operating expenses.

A 5 January 2024 hack with losses of €4.08m, of which €3.44m is recorded as incident-related loss in 2024.

The company states that:

The stolen funds were tagged and reported to Estonian police; €932,902 was traced and fully returned to company accounts on 12 February 2025.

It was able to cover all losses from both hacks, achieving positive equity by Q3 2024 and positive own funds by Q4.

To secure client balances, Dream Finance took out a €20m loan, parked on a separate bank account, and repaid €12m by year-end. The balance sheet shows €8m of short-term loans (4.5% interest, maturing August 2025) plus a separate €0.95m loan (5%, March 2025).

Client funds coverage at 31.12.2024:

Liability – client deposits: €163.87m

Assets held for clients (per notes):

Cash and demand deposits (incl. client cash): €52.51m, of which €41.51m are client deposits.

Crypto on client accounts (recorded as “inventories”): €117.36m across >37 coins, mainly BTC and various USDT/USDC variants.

On paper, client liabilities are fully (and slightly over-) covered by cash plus client-crypto positions at the reporting date. However, this model is structurally exposed to price volatility on Binance, Kraken and Finery, where these assets are held.

Revenue mix: Curaçao and Cyprus dominate

The geographic breakdown of 2024 revenue is particularly relevant from a compliance angle:

Curaçao: €21.99m

Cyprus: €6.87m

Other EU (incl. Estonia): €1.70m

Other non-EU (UK, Singapore, BVI, etc.): €1.80m

Curaçao alone accounts for ≈68% of reported sales; Cyprus adds approx. 21%. Dream Finance is therefore heavily dependent on offshore and Cypriot business, both jurisdictions closely linked to online gambling and high-risk merchants – classic AML exposure zones FinTelegram has reported on for years.

Regulatory context and 2025 headwinds

The report highlights:

Implementation of MiCA processes to access the EU market.

ISO 27001 certification obtained in 2024; internal audit of transaction monitoring scheduled for May 2025.

ESMA’s requirement to delist major stablecoins (USDT, DAI) by 31 March 2025; Dream Finance complied, which led to significant client outflows and a sharp revenue decline in April 2025.

Additional 2025 revenue reduction due to termination of customer contracts following a stricter internal risk strategy.

This suggests that the exceptionally strong 2024 profit is unlikely to be repeated under the new regulatory regime and client mix.

The Insider View

We interviewed a company insider about the 2024 financial statement to get a better feel for the actual situation in this group of companies. From an investor-protection perspective, the questions and concerns he raised are obvious:

who provided the €20 million emergency loan that Dream Finance says it used to “secure client funds” after the hacks – of which €12 million was repaid in 2024 but €8.95 million in short-term loans (4.5–5% interest) still sits on the balance sheet – and why is the lender completely undisclosed?

How can a company that booked incident-related losses of €39.95 million in 2023 and a further €3.44 million in 2024, with the management report itself acknowledging a 5 January 2024 hack of €4.08 million, still show that “the 2023 hack had no negative impact on the business model” and at the same time increase revenue from €25.18 million to €32.37 million (+29%) and flip from a net loss of €24.13 million to a net profit of €23.10 million in just one year?

Finally, is it sustainable – or even plausible in a regulated-style financial intermediary – that Dream Finance achieves an effective net margin of around 50–70%, with €12.73 million of its €14.02 million “other operating income” coming from FX and virtual-currency revaluation gains rather than core fees, in a year immediately following two major hacks and a period of negative equity (–€13.03 million at end-2023 to +€10.06 million at end-2024)?

The recent profitability of the company is abnormally high; the private company that was considered the most profitable in the world in the beginning of the 2000 was Glencore (before they went public) and they were operating at a fraction of the level of profitability of CoinsPaid.
Company Insider

Overall, a closer look at the CoinsPaid/CryptoProcessing group reveals multiple red flags, starting with the opaque origin of the emergency funding.

For FinTelegram’s investor and regulator readership, Dream Finance OÜ’s 2024 report confirms that CoinsPaid has, at least on paper, stabilised its balance sheet after severe security incidents. At the same time, it underlines why the group remains on our radar: offshore concentration, stablecoin dependence, and a risk profile that is tightly coupled to high-risk merchants and volatile crypto markets.

The Beneficial Owner Question

From a compliance and beneficial-ownership perspective, the structure around the Dream Finance Group (operating as CoinsPaid and CryptoProcessing) raises material questions. According to the Estonian register, Austrian national Alexander Horst Riedinger is recorded as the sole beneficial owner, while Ukrainian citizen Max Krupyshev, resident in Germany, is registered as CEO. Dream Finance used to be a division of Riedinger’s Austrian company A.R. Merkeleon GmbH, which is recorded as a software business.

The Austrian commercial register shows A.R. Merkeleon itself split 50/50 between Riedinger and the Cyprus-registered company Skylock Investments Ltd, for which no publicly identifiable natural-person owner is disclosed. Whistleblower information available to FinTelegram suggests that Riedinger may act primarily as a front and that the actual controlling interests behind CoinsPaid could lie with co-founder and Softswiss founder Ivan Montik, as well as Pavel Kashuba and Dzmitry Yaikau—persons who are also registered as beneficial owners of the Polish CoinsPaid entity.

As a matter of fact, Dzmitry Yaikau is officially registered as a beneficial owner of Dream Payments Sp. z o.o. Polish company registry sources list him among the entity’s beneficial owners, confirming his role and association with the company

FinTelegram’s experts are currently in the process of analysing corporate records and additional evidence to verify or refute these whistleblower allegations before drawing final conclusions.

Key Data Table

Metric | Value
Trading Names | CoinsPaid, CryptoProcessing, AlphaPo
Founded | 2018
Domains | CoinsPaid.com, CryptoProcessing.com
LinkedIn | https://www.linkedin.com/company/cryptoprocessing-com/
Headquarters | Tallinn, Estonia
Legal Entities | Dream Finance OÜ, Dream Finance UAB, Dream Finance US LLC, Dream Finance S.A. Dream Payments Sp. z o.o. Dream Finance US LLC

CEO

Max Krupyshev a/k/a Maksym Krupyshev
(Ukraine)

Beneficial Owner (UBO) | Alexander Horst Riedinger (Austria)
Key Individuals | Ivan Montik, Pavel Kashuba, Dzmitry Yaikau, Hanna Drabysheuskaya
Total Processing Volume (Q3 2025) | >€875M p.m. (CryptoProcessing)
Monthly Transaction Volume | 1M transactions p.m.
Merchant Accounts | 800+ Operators
License – Estonia | FIU Estonia CASP License
Business Model | Crypto Payment Gateway & Exchange
Target Industries | iGaming, Online Gambling, High-Risk
Major Security Incidents | $37.3M Hack (July 2023), $7.5M Hack (2024)
Former Brand Names | AlphaPo (integrated operations)
Related Entities | SoftSwiss, A.R. Merkeleon GmbH

Share Information

We will continue to map ownership structures (Estonia-Lithuania-Cyprus-Curaçao), follow regulatory developments under MiCA, and collect further whistleblower information on CoinsPaid’s client base and transaction flows.