Norwegian authorities have indicted four men for operating a Ponzi investment scheme that defrauded nearly 963 million NOK (86.5 million USD) from investors between 2015-2018. The scammers lured victims into investing in 'virtual' product packages, including cryptocurrencies and stocks, but in reality, no actual investments were made.

Ponzi Scheme – Preying on Investor Trust

According to the Norwegian Economic Crime and Environmental Crime Investigation Agency (Økokrim), the money that investors send in is only used to pay earlier victims, similar to the notorious pyramid scheme #ponzi . No actual investment activities take place.

📌 Operation model:

  • Victims are called to invest in projects like Crypto888 Club, Octa Partners, and Nano Club.

  • These projects continuously change names, from Octa Partners → Nano Club → Crypto888 → Nano Crowd, but the essence is all fraud.

  • Projects that issue their own cryptocurrencies, such as OctaCoin, NanoCoin, and Ormeus Coin, promise attractive monthly returns.

  • After raising a large amount of money, the project disappears or changes its name, continuing to deceive new investors.

Money Laundering Over 62 Million USD Across Multiple Countries

The masterminds laundered over 700 million NOK (62.7 million USD) through a Norwegian investment company, then transferred the money to linked accounts in Asia, Belgium, the Netherlands, and China.

4 individuals have been indicted, including:

  • Terje Hvidsten – A former art dealer with a history of fraud, currently serving time since 2024 for another fraud case.

  • Dag Hætta (formerly known as Verner) Eriksen – Has multiple convictions related to corruption and fraud.

  • A 52-year-old man from Romerike, Norway, currently denies the charges.

  • A 70-year-old former lawyer, accused of aiding money laundering.

The trial is expected to last 60 days, starting in September in Oslo.

Crypto Investment Scams – A Growing Trend

🚨 According to a report by Chainalysis, in 2024 alone, crypto investment scams received at least 9.9 billion USD in on-chain value. Scam models like 'pig butchering' – luring victims with promises of huge profits – are becoming more popular than ever.

📌 Reasons why crypto is easily exploited for scams:

  • Anonymity and decentralization make tracking money flows more difficult.

  • Investors lacking knowledge are easily lured by 'virtual' profits.

  • Legal regulations are still being developed, creating opportunities for fraudsters to exploit.

Currently, regulatory bodies like the European Union (EU) are tightening laws with #MiCA and anti-money laundering (AML) packages to protect investors and prevent financial crimes in the crypto sector.

⚠️ Risk Warning

Crypto is a field with many opportunities but also carries considerable risks. Before investing, always:
✅ Thoroughly check the project, avoid chasing unrealistic profit commitments.
✅ Only trade on reputable, licensed platforms.
✅ Stay updated with information from reliable sources to avoid scams.