Key Data

• Trading Names: Paxum, Paxum Bank
• Legal Entities: Paxum Bank Limited, Paxum Inc., Gestion Paxum Inc.
  
• Activities: payment processor
  
• Locations: Commonwealth of Dominica
• Regulations: FINTRAC-registered Money Service Business in Canada, offshore bank license issued by FSU of Dominica
• Key People: Anton Postolnikov, Lyudmila Postolnikova, Andrei-Octav Moise, Angel Pacheco
• News: Paxum
• Latest update: Sept 11, 2024

Paxum and Paxum Bank are run by the same people who run FCA-regulated PayDek. The Romanian citizen and Canadian resident Andrei-Octav Moise is the CEO.

The Offering

Paxum Bank Limited is authorized and regulated by the Financial Services Unit, Commonwealth of Dominica. Paxum Bank Limited is the exclusive provider of all Paxum branded services, accounts, prepaid cards, and products.

Paxum and Paxum Bank offer businesses and individuals bank accounts and payment services.

The accounts are free for businesses and individuals. Likewise, incoming WIRES and SEPA transfers via IBAN are free of charge. Paxum charges approximately $45 per year for a prepaid card account for individuals.

For all other payment services, PayDek has published a comprehensive price list on its website.

Background and Services

• Headquartered in Dominica, a Caribbean island nation
• Licensed and regulated by the Financial Service Unit (FSU) of Dominica since 2016, it operates under the Offshore Banking Act No. 8 of 1996 of Dominica
• Offers traditional banking services, including current and savings accounts, merchant services, and financing options
• Specializes in serving high-risk industries, particularly the adult entertainment sector

Ownership and Management

• Primary owner: Anton Postolnikov, a Russian-American entrepreneur
• Previous CEO: Andrei-Octav Moise (stepped down in 2024)
• Parent company Paxum Inc. is owned by Lyudmila Postolnikova (US national, likely related to Anton Postolnikov)

Relationship with Adult Industry

• Positioned as a leading financial services provider for the adult entertainment industry
• Offers specialized services for adult content creators, webcam platforms, and related businesses
• Provides payment processing, payout solutions, and banking services for high-risk businesses often rejected by traditional banks

Controversies and Investigations

• Allegedly linked to a $16 million fraud case involving the OTP Bank branch in Romania
• Involved in suspicious transactions flagged by other banks
• Connected to insider trading allegations related to Trump Media & Technology Group

Connection to Tate Brothers

• Recent revelations show Tristan Tate had an account with Paxum Bank from 2017 to 2024.
• An adult webcam platform (MFCXY Inc.) deposited approximately $2.6 million into Tate’s Paxum account.
• Transactions continued until August 2022, four months before the Tates’ arrest in December 2022
• Wiretapped conversations suggest the Tate brothers used Paxum Bank to move money discreetly and avoid scrutiny.

Regulatory Concerns

• Despite being regulated by Dominica’s FSU, Paxum Bank‘s involvement in high-risk industries and offshore status raise concerns about regulatory oversight.
• The bank claims to adhere to international banking standards, but recent controversies suggest potential gaps in compliance and risk management.

Compliance Issues

Paxum Bank has been involved in controversies, including allegations of links to fraud and insider trading. The bank was recently scrutinized for its ties to the Tate brothers, who allegedly used it to move funds discreetly. Despite regulatory oversight from Dominica’s Financial Services Unit, Paxum’s offshore status and involvement with high-risk clients have raised concerns about compliance and potential financial misconduct.

Conclusion

The recent revelations about Paxum Bank‘s relationship with the Tate brothers have brought increased scrutiny to the institution’s operations and its role in facilitating potentially illicit financial activities. While the bank denies any wrongdoing, these developments highlight the challenges of regulating offshore financial institutions and their potential involvement in high-risk or controversial business practices.

There is some criticism from merchants and individuals, but that is common. However, Paxum Bank has been involved in several strange financial transactions that have attracted the authorities’ interest (The Guardian, Reporter.London). Therefore, we put Paxum and Paxum Bank on our Red Compliance List.