CoinsPaid Compliance Review 2024: From Deep Loss to €24M Profit and Emerging Questions

Overview

Dream Finance OÜ, the Estonian parent entity behind the well-known CoinsPaid and CryptoProcessing brands, has released its audited 2024 financial statements. The results show a dramatic recovery: the company rebounded from a major 2023 loss to report a strong profit.

Its Lithuanian subsidiary, Dream Finance UAB, also demonstrated remarkable improvement — closing 2024 with a profit exceeding €1 million on revenues just above €1.9 million.

Business Profile and Operating Scale

Founded in 2019, Dream Finance OÜ operates as a crypto payment processor offering both B2B and B2C services through CryptoProcessing and CoinsPaid.

Core Services:

• Virtual asset wallets and crypto-fiat conversion

• SaaS licensing of its payment gateway infrastructure

• OTC trading and cross-chain recovery tools

Despite facing serious cyberattacks and regulatory pressures, CoinsPaid’s transaction volume grew significantly in 2024.

The consistent rise in volume signals sustained merchant demand even after security incidents.

Estonian Operations: Major Turnaround in 2024

The Estonian entity’s results reveal one of the most substantial recoveries in the European crypto payments sector.

A key driver of the profit was crypto and FX revaluation gains — roughly €12.7 million — which constituted most of the “other operating income.”
This produced an exceptional ~50% net margin on total operating income of about €46.4 million, an unusually high level even for the volatile crypto sector.

Lithuanian Subsidiary: Exceptional Margin

Dream Finance UAB, the Lithuanian arm of the group, mirrored this turnaround.

• 2024 Revenue: €1.9M

• Net Profit: just over €1M

• Net Margin: approximately 52%

In comparison, 2023 operations were marginal: under €30,000 in revenue and a small loss of about €10,000.
The 2024 results suggest rapid expansion and aggressive cost efficiency across the group.

Together, the Estonian and Lithuanian entities produced over €24 million in combined net profit for 2024, resulting in a group profit margin above 50% — an extraordinary figure within the regulated payment processing ecosystem.

Security Breaches and Financial Recovery

The management report acknowledges two major hacking incidents that tested the company’s resilience:

1. 2023 Attack — Recorded loss of approximately €39.95 million.

2. 5 January 2024 Attack — Additional loss of €4.08 million, with €3.44 million booked as incident-related expense.

Company Response and Fund Recovery

• Stolen funds were traced and reported to the Estonian police.

• €932,902 was recovered and returned to corporate accounts on 12 February 2025.

• Despite the scale of losses, Dream Finance fully covered the damage, restoring positive equity by Q3 2024 and achieving positive own funds by Q4 2024.

To safeguard customer deposits, the firm obtained a €20 million emergency loan, placed in a segregated bank account, and repaid €12 million by year-end.
The remaining €8.95 million appears on the balance sheet as short-term borrowings:

Client Fund Coverage at Year-End 2024

Dream Finance held crypto assets across more than 37 digital coins, primarily BTC and USDT/USDC.

On paper, the client liabilities were fully — and slightly over — covered by the combination of fiat and digital assets. However, the exposure to exchange rate volatility remains high, as most assets are stored on Binance, Kraken, and Finery.

Revenue Composition: Offshore Focus

The geographic breakdown of 2024 revenue shows significant reliance on offshore and Cypriot operations — regions historically associated with online gambling and high-risk merchants.

This composition highlights the compliance sensitivity of Dream Finance’s client base — a concentration long tracked by Scam-Or Project in connection with AML exposure and iGaming payment networks.

Regulatory Context and 2025 Outlook

The 2024 management report outlines several key regulatory and operational developments that shape future profitability.

Highlights

• MiCA Implementation: Dream Finance began adapting operations for EU-wide licensing.

• ISO 27001 Certification: Achieved in 2024; internal audit of AML/transaction monitoring scheduled for May 2025.

• Stablecoin Delisting: Following ESMA’s directive, the firm delisted USDT and DAI by 31 March 2025, prompting major client outflows.

• Revenue Decline: The company expects significant reductions in Q2–Q4 2025 due to lost clients and stricter internal risk policies.

While 2024 was a record year, management acknowledges that replicating such profits under the upcoming MiCA regime will be challenging.

Insider Commentary: Unanswered Questions

An insider familiar with the company’s financials shared several concerns with Scam-Or Project, offering insight into inconsistencies and transparency gaps.

Key Issues Raised

1. Origin of the €20M Loan:

• The lender remains undisclosed, despite its pivotal role in restoring client fund coverage.

• €12M has been repaid, yet €8.95M remains outstanding.

2. Profitability Despite Major Losses:

• How can an entity that suffered nearly €43M in hacks over two years simultaneously record a €23M profit in 2024?

• The report claims “no negative impact on the business model,” yet the balance sheet shows a massive turnaround within 12 months.

3. Unusual Margins:

• Roughly €12.7M of €14.02M “other income” came from crypto and FX revaluations, not from core operational fees.

• This implies an effective net margin of 50–70%, rarely seen among regulated financial intermediaries.

“Even during the commodity boom of the early 2000s, Glencore — once the world’s most profitable private company — operated at a much lower margin. CoinsPaid’s numbers simply defy conventional benchmarks,” the insider remarked.

Governance and Beneficial Ownership Concerns

The corporate and ownership structure behind Dream Finance Group (CoinsPaid / CryptoProcessing) raises ongoing compliance questions.

According to Estonia’s business registry:

• Beneficial Owner (UBO): Alexander Horst Riedinger (Austria)

• CEO: Max Krupyshev (Ukraine/Germany resident)

Dream Finance originally evolved from A.R. Merkeleon GmbH, an Austrian software company controlled by Riedinger.
However, Austrian corporate filings show A.R. Merkeleon GmbH is owned 50/50 by Riedinger and Skylock Investments Ltd (Cyprus), whose beneficial owners are not publicly disclosed.

Whistleblower Allegations

Information obtained by Scam-Or Project suggests that:

• Riedinger may act primarily as a nominee.

• Actual control may rest with Ivan Montik (SoftSwiss founder), Pavel Kashuba, and Dzmitry Yaikau, who are all linked to CoinsPaid’s Polish subsidiary.

• Dzmitry Yaikau is formally listed as a beneficial owner of Dream Payments Sp. z o.o. in Poland.

The ongoing analysis by Scam-Or Project experts focuses on verifying these ownership ties and determining whether the network extends across Estonia, Lithuania, Cyprus, and Curaçao.

Group Profile Summary

Conclusions

The 2024 financials show that Dream Finance Group has regained stability after a turbulent period marked by security breaches and liquidity stress.
On paper, the company now presents a strong balance sheet and exceptional profitability.

Yet, multiple warning signs persist:

• Heavy reliance on offshore markets (Curaçao and Cyprus)

• Ambiguous source of emergency capital

• Disproportionate profitability driven by non-operational gains

• Opaque beneficial ownership chain

For compliance professionals and regulators, these factors suggest that CoinsPaid’s financial recovery — though impressive — warrants continued scrutiny.

Scam-Or Project will continue monitoring Dream Finance’s group entities, ownership ties, and post-MiCA performance metrics throughout 2025.