Russian entrepreneurs Roland Isaev and Paata Gamgoneishvili have become significant figures in the realms of online gambling and cryptocurrency payments. Ongoing investigations have uncovered their substantial connections to the SoftSwiss and Merkeleon groups, which are managed through intricate business frameworks and strategic acquisitions. Court documents and information from whistleblowers have exposed a worldwide network that facilitates unlicensed gambling activities throughout Europe and other regions.
Key Insights
In 2019, Isaev and Gamgoneishvili gained control of SoftSwiss by acquiring a majority stake in Befree Ltd. through Tall Trade Ltd. Legal documents and whistleblower accounts confirm that they are the beneficial owners of both SoftSwiss and Merkeleon. A network of holding companies based in Cyprus plays a crucial role in channeling funds through both fiat and cryptocurrency methods. Notably, SoftSwiss conducts gambling operations in Europe and Australia without the necessary licenses, effectively bypassing regulatory requirements.
The SoftSwiss Group and Its Structure
Isaev and Gamgoneishvili made their entry into the online gambling industry by acquiring SoftSwiss. Reports from whistleblowers and court filings indicate that this acquisition was executed through Tall Trade Ltd., which involved a complex transaction with multiple entities and a loan agreement, leading to a shareholder dispute in the British Virgin Islands.
The corporate structure of SoftSwiss includes several key entities. Direx Limited, based in Cyprus, operated SoftSwiss until 2020, while Direx NV, located in Curaçao, is owned by Befree Ltd. The current operator of SoftSwiss is Stable Aggregator Ltd., based in Malta. Befree Ltd. previously held majority ownership by founders Ivan Montik and Dzmitry Yaikau.
Unlicensed Gambling and Crypto Payment Schemes
Isaev and Gamgoneishvili’s influence extends to several prominent gambling brands, including Rabidi Group, Dama, Hollycorn, and N1 Interactive. These brands operate under offshore licenses in jurisdictions like Curaçao, allowing them to engage in unregulated gambling activities in Europe and Australia.
The SoftSwiss gambling network relies on Merkeleon’s cryptocurrency payment systems to manage funds, utilizing services such as CoinsPaid and CryptoProcessing. Cyprus serves as the operational hub for the network’s financial activities, with various companies acting as intermediaries. For instance, Befree Ltd. functions as a fund transfer intermediary, Primefuture Ltd. facilitates cryptocurrency payments, and Bitcapital Ltd. manages gambling revenues.
The SoftSwiss Group Today
Currently, SoftSwiss operates as an iGaming software provider under the trading name SoftSwiss. Its legal entity is Stable Aggregator Ltd., and it is authorized by the Malta Gaming Authority with License #MGA/B2B/942/2022.
