The ongoing scrutiny surrounding OpenPayd and its founder, Dr. Ozan Ozerk, has intensified, casting doubt on the once-lauded fintech innovator’s regulatory compliance and business practices. While Ozerk has long been seen as a visionary in the digital finance space—with ventures such as OpenPayd, European Merchant Bank (EMBank), and Ozan Elektronik Para—recent regulatory rulings are challenging the stability of his empire.
Malta Regulator Rules Against OpenPayd
A key development came from the Malta Financial Services Authority (MFSA), where the financial arbiter held OpenPayd responsible for the loss of £23,300 (€26,600) belonging to an elderly woman. The victim was deceived by scammers into transferring funds to cryptocurrency exchanges that operated accounts with OpenPayd.
These transfers were made via virtual IBANs issued by OpenPayd. The regulator cited insufficient due diligence and weak internal controls, suggesting the company failed to detect and prevent fraudulent activities on its platform. OpenPayd has since appealed the ruling.
→ Source: Ratex42
Exposure to High-Risk Transactions
Reports have increasingly linked OpenPayd to high-risk transactions and companies associated with scams. One notable example involves CurrencyRock and its defunct trading platform, Insirex. Between March and May 2024, around €2.5 million allegedly flowed through OpenPayd accounts as part of an investment fraud scheme.
This raises serious questions about the onboarding and monitoring procedures OpenPayd applies when working with fintech clients and payment processors.
Opaque Structures and Offshore Links
Dr. Ozan Ozerk’s financial network spans multiple jurisdictions and includes various entities tied to digital banking and payments. His early ventures were connected to the online gambling and payment processing sectors. He founded the Akce Group in Malta, which later established EMBank in Lithuania.
Notably, Ozerk and his former business partner Anil Uzun have also been named in the ICIJ Offshore Leaks Database—adding to the concerns regarding transparency and governance.
→ Source: FinTelegram
Policy Changes and Outlook
In light of regulatory pressures, OpenPayd has updated its terms and conditions to improve fund safeguarding and clarify user responsibilities. However, the firm remains under the close watch of regulators, including the MFSA and the UK’s Financial Conduct Authority (FCA).
The outcome of OpenPayd’s appeal and potential further enforcement actions will be crucial in determining the company’s trajectory and reputation moving forward.
Conclusion
The OpenPayd case underscores a growing dilemma in the fintech sector: how to balance disruptive innovation with strong compliance. While offering streamlined financial solutions and digital infrastructure, firms must also ensure that their platforms do not become safe havens for fraud or regulatory arbitrage.
For Dr. Ozerk and OpenPayd, the path forward will demand not only legal resilience but a clear commitment to transparency, security, and compliance.