As a continuation of RatEx42’s initial report, and reinforced by recent revelations from FinTelegram, the unraveling of Magua Pay Inc.—a once-operational Canadian money services business (MSB)—reveals a much larger and dangerous financial web extending far beyond Canada.
🔎 From Disappearance to Deeper Network: What’s New
1. A Collapsing Front for Scam Payments The abrupt disappearance of Magua Pay and its crypto-branded arm Black Rabbit isn’t an isolated event—it is part of a systematic retreat, likely motivated by increasing regulatory pressure and global AML enforcement. The shutdown aligns with a pattern seen in past collapses of high-risk payment processors tied to illegal brokers and unlicensed financial activity.
2. Magua Pay as a Node in STSM Holding’s Global Web Magua Pay, originally licensed under FINTRAC (Canada), operated as a key subsidiary of Estonian-based STSM Holding. This conglomerate, led by Moriel Carmi and Dmitri Orlov, strategically diversified its payment services across jurisdictions to minimize regulatory exposure. Among the most significant links in this network:
- TomPay Ltd (UK) – FCA-licensed, but reported over £1.1M in losses in 2022–2023. Connected to Estonian and Polish crypto firms like Neuronext OÜ and Banxe Ltd.
- Banxe Ltd (UK) – An unregulated entity acting as a distribution partner for crypto operations, with links to high-risk clients.
- SmartPayments (Estonia) – Previously operated under the name ExFrame OÜ, a crypto-focused payment processor under regulatory watch.
3. Regulatory Red Flags and AFSA Ruling Moriel Carmi (formerly Mark Weinstein), was officially declared “not fit and proper” to run a financial institution by Kazakhstan’s Astana Financial Services Authority (AFSA) in 2023. This ruling, combined with a UK judicial review, questions why FCA-licensed TomPay is still operational under his control.
4. Blacklisted by Compliance Agencies The cyber-finance watchdog RatEx42 labeled Black Rabbit with a “Red Compliance” rating in 2023, signaling serious AML risks. These warnings have materialized with Magua Pay’s sudden digital disappearance in March 2025, effectively stranding clients and blocking transaction visibility.
🕵️♂️ Operational Implications
- Fund Flow Disruption: Victims and brokers depending on Magua Pay for withdrawals or deposits may have lost access to escrowed funds.
- Investigative Roadblocks: The disappearance complicates asset tracing and fund recovery, especially for investors defrauded by platforms like BBanc, StoxInvest, and GrandCapital.
- Ripple Effects Across STSM Entities: Authorities in the UK, Estonia, and Canada are now under pressure to scrutinize affiliated firms, particularly TomPay, which still holds a license from the UK’s FCA.
📌 Conclusion: The Network Persists
While Magua Pay and Black Rabbit may have disappeared from public view, the financial network behind them remains intact, albeit under heavy scrutiny. The entities tied to STSM Holding continue operating across Europe and North America, exploiting jurisdictional gaps and crypto opacity.
Recommendations:
- Regulators: Investigate FCA’s oversight over TomPay and initiate coordination with Canadian and Estonian authorities.
- Businesses and Consumers: Avoid any dealings with entities tied to STSM Holding until full clarity emerges.
- Whistleblowers: Submit tips to FinTelegram or Whistle42, as further disclosures could support global enforcement.
References:
- https://ratex42.com/financial-intelligence-report-the-disappearance-of-magua-pay-and-black-rabbit-a-high-risk-payment-processor-in-the-scam-broker-ecosystem/
- https://fintelegram.com/financial-intelligence-report-the-disappearance-of-magua-pay-the-high-risk-payment-network-of-moriel-carmi-and-regulatory-scrutiny/