Key Data

• Trading Name: MoonPay
• Legal Entities: MoonPay (UK) Limited, MoonPay USA LLC, MoonPay Technology Services Limited, MoonPay Italy s.r.l., MP Services AG, MP Technology Services Ltd
  
• Activities: Crypto payment processor
  
• Location: US, UK, Ireland, Italy, Singapore, Malta, Seychelles
  
• Regulations: Registered crypto business in several jurisdictions and registered money service business.
• Key People: Ivan Soto-Wright (LinkedIn profile),  Victor Faramond (LinkedIn profile)
• Latest news: MoonPay
• Latest update: July 4, 2024 (profile under review)

MoonPay, operated by various legal entities across various jurisdictions, including MoonPay Inc., Maltese Moon Pay Limited, MoonPay Technology Services Limited, Ireland, and others, is a fintech that builds crypto payments infrastructure. In the US, MoonPay is registered as a money service business (NMLS ID: 2071245).

US resident Ivan Soto-Wright is the company’s co-founder and CEO. He is also the founder and general partner of the New York-based venture capital firm HODL.vc. His co-founder is Victor Faramond.

According to the company, it is active in more than 160 countries. Its technology is used by 250+ leading wallets, websites, and applications to accept payments and defeat fraud.

Financial Situation

In November 2021, Moonpay announced it had closed a $555 million Series A financing round at a $3.4 billion valuation. Tiger Global Management and Coatue led the round, including Blossom Capital, Thrive Capital, Paradigm, and NEA.

In a surprising move, MoonPay executives, including CEO Ivan Soto-Wright, sold $150 million worth of company shares during the Series A funding round in November 2021, just months before the crypto market crash in 2022. This secondary sale was not previously disclosed publicly.

Offering

MoonPay offers a seamless way for users to buy cryptocurrencies using various payment methods such as credit or debit cards, bank transfers, and Apple Pay. MoonPay acts as an intermediary between users and cryptocurrency exchanges, facilitating the purchase and delivery of digital assets to the users’ wallets.

The platform aims to simplify the process of buying cryptocurrencies for both individuals and businesses. It provides a user-friendly interface and a secure infrastructure to ensure a smooth and safe transaction experience. MoonPay supports a wide range of cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Litecoin, as well as many others.

By partnering with various exchanges and wallets, MoonPay enables users to complete their cryptocurrency purchases within minutes without the need to create multiple accounts or go through complex verification processes on different platforms. The service is available in numerous countries, making it accessible to users worldwide.

Customer Reviews

On Trustpilot, the company earned an “Excellent” trust level with a 4.3-star rating (as of July 4, 2024) based on more than 88,700 reviews. This is impressive and

The Crypto Payment Shooting Star

Experiencing rapid growth during the recent surge in cryptocurrency interest, MoonPay reported projected net revenues of $150 million in 2021. The company gained significant public attention when Paris Hilton discussed non-fungible tokens (NFTs) on The Tonight Show, mentioning MoonPay in January 2022.

As of January 2024, MoonPay boasts over 5 million customers and is valued at over $3.4 billion. In the 28 days leading up to January 23, 2024, its website attracted nearly 4.5 million visitors who spent an average of over 7 minutes on the site.

MoonPay‘s operations are spread across various legal entities in different jurisdictions. It functions as MoonPay USA LLC, complying with money transmitter or money service business regulations in most states. It’s registered in the UK, Ireland, Italy, and Liechtenstein in Europe as a virtual assets service provider via different legal entities. MoonPay Ltd in Seychelles and MoonPay Ireland are listed as European operators in their terms of service.

Compliance Issues

MoonPay serves high-risk industries, including online gambling and sports betting. We have discovered Moonpay as a high-risk crypto payment processor in numerous online casinos and gambling schemes, including those that operate illegally without regulatory permission.

Despite its registration as a crypto service provider in several regulatory regimes, MoonPay has been linked to processing payments for scams and unauthorized financial services, including dealings with unauthorized crypto exchanges and broker schemes. We found MoonPay as a facilitating payment processor at the unauthorized offshore broker schemes TradeTech Solutions and Oro Markets against regulators have issued warnings.

Rating Conclusion

MoonPay is registered as a Money Services Business (MSB) and cryptocurrency services provider in several jurisdictions, including Italy, Liechtenstein, Ireland, and the UK. Despite these registrations, our analysis has revealed instances where MoonPay has been utilized as a payment processor in connection with scams, illegal online casinos, and unauthorized gambling operations. Consequently, we have placed MoonPay on our Orange Compliance list.

However, it is important to note that we have not identified any significant risks to customers directly using MoonPay’s services. The company seems to be well-funded. Therefore, we have included MoonPay in our Green Risk list, indicating a lower risk level for clients.