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Crypto scam exposed in Norway. Credit: Pexels, Alesia Kozik
The Norwegian Economic Crime Unit has a report on the subject. Økokrim, the fraudulent operation amassed over 900 million kroner (€77.3 million), with more than 700 million kroner (€60 million) laundered through a Norwegian law firm and transferred to Asian accounts.
Crypto Ponzi Scheme Found in Norway
The multi-level marketing scheme promised lucrative returns on investments in mining, gas fields and real estate. Participants were encouraged by the multi-level marketing structure to purchase “product packages” which included proprietary cryptocurrency and shares.
However, investigators confirmed that no real investments were made, with the scheme operating solely on new deposits from unsuspecting investors – hallmarks of a Ponzi scheme.
Ponzi schemes, if you are wondering what they are, is a financial fraud that uses money from newer investors to pay back previous investors rather than using money from business profits. The plan appears to be successful, but it is not. Investors begin withdrawing their money or new investments are slow.
Terje Hvidsten is a former art dealer who has a long history of fraud. He’s been in jail since 2024, for another financial offense. Dag Hætta (formerly Verner) Eriksen, who also has previous fraud and corruption convictions. A 52-year old man from Romerike and a 70-year old former lawyer.
Norwegian Ponzi Scheme: International Victims
Thousands of investors were taken in by the scam. Most were from Sweden and Belgium. Others were from the Netherlands and China. They sent money to the scammers believing they were investing in profitable ventures. Under various brand names, the operation was carried out. Crypto888 Club, Octa Partners, You can also find out more about the following: Nano ClubEach version introduces its own cryptocurrency, such as OctaCoin, NanoCoin. Ormeus Coin.
Økokrim’s Investigation revealed that funds were used to purchase luxury items, such as property in Spain and expensive vehicles.
Regulatory experts warn that cryptocurrency-related scams are becoming increasingly common. Sarah Twohig a lawyer specializing in crypto-fraud, says that fraudsters take advantage of the decentralised aspect of digital assets, which makes it harder for authorities and law enforcement to trace stolen money.
The EU’s Markets in Crypto-Assets Regulation will impose more strict rules on crypto-asset providers to address these risks. Meanwhile, the EU’s new anti-money-laundering (AML), package is designed to prevent digital currencies from being used for financial crimes.
According to reports, the trial will begin at Oslo District Court on September 1 and last for approximately 60 days. DN.
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