Jason Butcher

Full Report

Key Points

• Jason Butcher is the CEO of CoinPayments, a cryptocurrency payment processor implicated in servicing the $4 billion OneCoin Ponzi scheme, despite a 2022 denial of involvement.

• Allegations suggest CoinPayments, under Butcher’s leadership, has a history of facilitating money laundering for multiple fraudulent multi-level marketing (MLM) schemes.

• Butcher’s long tenure with CoinPayments, starting as an advisor in 2015, raises questions about his awareness of the company’s ties to illicit activities.

• No direct legal actions or convictions against Butcher personally are documented, but CoinPayments faces significant reputational and regulatory scrutiny.

• The company’s operations under a Lithuanian shell company and Butcher’s leadership signal potential risks for investors and users.

Overview

Jason Butcher is the Chief Executive Officer of CoinPayments, a cryptocurrency payment processor that enables merchants to accept digital currencies like Bitcoin and Ethereum. CoinPayments operates under UAB Star Ventures, a company incorporated in Lithuania, and is co-owned by Butcher and Alex Alexandrov. Butcher joined CoinPayments in 2015 as an advisor, became Chief Operating Officer in 2017, and assumed the CEO role in 2020. His leadership focuses on expanding the platform’s global reach and integrating cryptocurrency payment solutions for businesses. Based in Canada, Butcher has positioned CoinPayments as a key player in the crypto payment processing industry, though the company’s associations with fraudulent schemes have cast a shadow over its legitimacy.

Allegations and Concerns

• Facilitating OneCoin Ponzi Scheme: CoinPayments is accused of providing financial services to OneCoin, a $4 billion Ponzi scheme, even after denying involvement in June 2022. A 2023 OneEcosystem video and marketing materials explicitly featured CoinPayments as a payment processor for OneCoin’s “digital cash wallet” top-ups.

• History of Money Laundering: CoinPayments has been linked to multiple MLM Ponzi schemes, including:

  • PowerBot (2019): Blamed CoinPayments for its collapse.

  • Control Finance (2019): Laundered ~$150 million through CoinPayments, as revealed by the CFTC.

  • Krstijan Krstic (2021): Used CoinPayments to launder Ponzi funds, per SEC findings.

  • NexusICO (2022): Utilized CoinPayments for Ponzi activities.

  • EminiFX (2022): US authorities recovered 3,658 BTC of stolen funds sent to CoinPayments.

  • NovaTech FX (2022): Blamed withdrawal delays on CoinPayments.

• Regulatory Evasion: Operating under UAB Star Ventures, a Lithuanian shell company, raises concerns about CoinPayments’ transparency and potential efforts to evade stricter regulations in other jurisdictions.

• Leadership Accountability: As CEO since 2020 and a senior figure since 2015, Butcher is implicated in CoinPayments’ ongoing ties to OneCoin and other schemes, suggesting either negligence or complicity.

Customer Feedback

Publicly available customer feedback on CoinPayments is limited in the provided source, but the company’s association with fraudulent schemes has drawn sharp criticism from industry watchdogs and whistleblowers:

• Negative Feedback: A BehindMLM reader, WhistleBlowerFin, highlighted CoinPayments’ role in OneCoin’s 2022 marketing materials, contradicting the company’s denial of involvement. This suggests a lack of trust among informed observers.

• No Positive Feedback Documented: The source does not provide direct customer testimonials praising CoinPayments or Butcher’s leadership, indicating a lack of positive sentiment in this context.

• General Sentiment: The absence of widespread customer reviews may reflect CoinPayments’ niche B2B focus, but the documented ties to scams likely deter reputable merchants, fostering a negative perception.

Risk Considerations

• Financial Risks:

  • Loss of Funds: Merchants or users processing payments through CoinPayments risk having funds frozen or seized if the platform is targeted by regulators for facilitating illicit transactions.

  • Market Volatility: As a crypto processor, CoinPayments is exposed to cryptocurrency price fluctuations, which could impact its financial stability.

• Reputational Risks:

  • Association with Fraud: CoinPayments’ documented ties to OneCoin and other Ponzi schemes severely damage its credibility, potentially alienating legitimate clients.

  • Public Scrutiny: Butcher’s leadership is under fire due to the company’s failure to sever ties with fraudulent entities, risking personal and corporate reputational harm.

• Legal Risks:

  • Regulatory Action: US authorities have recovered funds from CoinPayments in past cases (e.g., EminiFX), signaling potential future investigations or sanctions.

  • Money Laundering Liability: Facilitating transactions for Ponzi schemes could expose CoinPayments and Butcher to criminal charges under anti-money laundering (AML) laws.

• Operational Risks:

  • Shell Company Structure: Operating via a Lithuanian shell company may complicate accountability and expose the firm to regulatory crackdowns.

  • Leadership Stability: Butcher’s long-term involvement in controversial activities could lead to internal or external pressure for leadership changes.

Business Relations and Associations

• Alex Alexandrov: Co-owner of CoinPayments, originally from Ukraine but based in Canada. His role alongside Butcher suggests shared responsibility for the company’s strategic decisions.

• UAB Star Ventures: The Lithuanian shell company under which CoinPayments operates, raising questions about transparency and regulatory oversight.

• OneCoin/OneEcosystem: Despite denials, CoinPayments has been repeatedly linked to OneCoin, a Ponzi scheme run by Ruja Ignatova and later Ventsislav Zlatkov, allegedly tied to Bulgarian organized crime.

• Other MLM Schemes: CoinPayments’ services have been used by fraudulent entities like PowerBot, Control Finance, NexusICO, EminiFX, and NovaTech FX, indicating a pattern of enabling dubious operations.

• No Notable Legitimate Partnerships: The source does not mention partnerships with reputable financial institutions or major merchants, which may reflect CoinPayments’ tarnished reputation.

Legal and Financial Concerns

• No Direct Lawsuits Against Butcher: The source does not document specific lawsuits or criminal charges targeting Jason Butcher personally.

• CoinPayments’ Legal Exposure:

  • EminiFX Case (2022): US authorities recovered 3,658 BTC from CoinPayments, indicating the platform’s involvement in processing stolen funds.

  • SEC and CFTC Actions: Past cases involving Control Finance and Krstijan Krstic highlight CoinPayments’ role in laundering Ponzi funds, per regulatory findings.

  • Potential AML Violations: Facilitating transactions for OneCoin and other schemes could attract scrutiny from global AML regulators, though no active cases are confirmed in the source.

• Financial Health: No bankruptcy filings or unpaid debts are mentioned, but CoinPayments’ reliance on crypto transactions and ties to fraudulent schemes suggest financial instability if regulatory action intensifies.

• Regulatory Status: Operating under a Lithuanian shell company may allow CoinPayments to skirt stricter regulations, but this strategy increases the risk of sudden legal challenges.

Risk Assessment Table

Jason Butcher’s leadership of CoinPayments presents a complex case. On one hand, his long tenure and rise from advisor to CEO demonstrate business acumen and familiarity with the crypto payment processing industry. CoinPayments’ ability to operate globally suggests some level of operational competence. However, the overwhelming evidence of CoinPayments’ ties to OneCoin and other Ponzi schemes casts serious doubt on Butcher’s integrity and the company’s legitimacy.

The evidence strongly suggests that CoinPayments, under Butcher’s leadership, has prioritized short-term profits over ethical business practices. The company’s history of servicing Ponzi schemes, despite public denials, indicates a systemic issue that Butcher, as CEO since 2020 and a senior figure since 2015, cannot plausibly claim ignorance of. The use of a shell company further erodes trust, as it may be a deliberate attempt to evade regulatory oversight. While Butcher has not been personally charged, his association with CoinPayments exposes him to significant reputational and legal risks.

 Investors, merchants, and users should exercise extreme caution when dealing with CoinPayments or engaging with Jason Butcher. The pltform’s ties to fraudulent schemes and lack of transparency make it a high-risk entity. Verify all transactions independently, monitor regulatory developments, and consider alternative payment processors with stronger compliance records. If Butcher launches new ventures, scrutinize their business models and associations closely.