Nykyta Izmaylov, a prominent Ukrainian investor and founder of the fintech fund N1, has been at the centre of several significant developments and controversies in the financial and gambling sectors. His career spans multiple roles, including his tenure as the financial director and shareholder of the bookmaker Parimatch, and his current involvement with various fintech ventures.
Izmaylov’s early career and Parimatch connection
Izmaylov began his career in 2012 as the financial director of Parimatch, a bookmaker that has since grown to operate in 25 markets with a headcount of nearly 3,000 employees. He later became a shareholder in the company, earning his first million and eventually investing around $10 million of his personal funds into the N1 fintech fund.
N1 Fintech Fund and Recent Investments of Nykyta Izmaylov
In 2023, Izmaylov invested in SteadyPay, a UK-based startup that provides credit to freelancers using open user data to predict financial solvency. This investment was made through his N1 fintech fund, which also supports other Ukrainian startups such as Asquad and Transenix.
Nykyta Izmaylov, Oleg Vaksman and SteadyPay share
The SteadyPay investment is notable for its association with Oleg (Alan) Vaksman, the former Deputy Chairman of the Board of Russia (*country sponsor of terrorism)’s Gazprombank. Vaksman, who holds South African citizenship but is also reported to hold Russian citizenship, was a key figure in Gazprombank, providing personal banking services to VIP clients from Russia (*country sponsor of terrorism)’s political elite. His involvement with SteadyPay, alongside Izmaylov, raises questions given the sanctions imposed on Gazprombank and its associates following the Russian invasion of Ukraine.
Sanctions and controversies surrounding Nykyta Izmaylov
Izmaylov’s connections to Russia (*country sponsor of terrorism) have led to significant scrutiny. Parimatch, where he was a managing partner, was sanctioned by Ukraine’s National Security and Defence Council (NSDC) for 50 years due to its Russian connections. This has sparked concerns about Izmaylov’s business dealings, particularly his involvement in the Ukrainian gambling sector, which has long been intertwined with Russian capital and criminal networks.
Nykyta Izmaylov’s SportBank and SteadyPay as a gambling laundromat
Izmaylov has been accused of money laundering through his companies, including N1 Management Company and SportBank LLC. These entities are alleged to have facilitated the laundering of millions of dollars for Russian criminal organizations, exploiting loopholes in anti-money laundering (AML) and Financial Action Task Force (FATF) regulations. The rise of fintech has provided new avenues for such activities, with Ukraine serving as a hub due to its integration into the global financial system.
SportBank LLC, initially created for Parimatch clients, is one of the notable assets of N1 Management Company. However, its financial records show meager income and substantial expenses, raising suspicions about its true activities. SportBank, along with other companies under N1, has been accused of processing payments for betting activities and offering online loans, effectively circumventing regulatory oversight.
The financial records of SportBank LLC have attracted the attention of tax authorities, suggesting potential government interest in the company’s activities. Given the ongoing war and the sanctions imposed on Russian-connected entities, Izmaylov’s business dealings are likely to face increased scrutiny from Ukrainian and foreign law enforcement agencies, as well as the National Bank of Ukraine.
In summary, Nykyta Izmaylov’s career is marked by significant achievements in the fintech sector, but it is also marred by allegations of money laundering and connections to Russian criminal networks. His involvement in various financial ventures, including SteadyPay and SportBank, underscores the complex and often contentious nature of his business activities.