Norwegian authorities have just prosecuted 4 men for running a Ponzi investment scam, embezzling nearly 963 million NOK (86.5 million USD) from investors during the period 2015-2018. The scammers lured victims into investing in 'virtual' product packages, including cryptocurrencies and stocks, but in reality, no investments were made.

Ponzi Scam – Preying on Investor Trust

According to the Norwegian Economic Crime and Environmental Agency (Økokrim), the funds that investors send in are only used to pay previous victims, similar to the notorious multi-level marketing model. No real investment activity takes place.

📌 Operating model:

  • The victims are called to invest in projects such as Crypto888 Club, Octa Partners, and Nano Club.

  • These projects continuously change names, from Octa Partners → Nano Club → Crypto888 → Nano Crowd, but they are essentially all scams.

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

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

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Money Laundering Over 62 Million USD Through Multiple Countries

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

4 individuals have been prosecuted including:

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

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

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

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

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

Crypto Investment Scams – A Growing Trend

🚨 According to a report from 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 enormous profits – are becoming more popular than ever.

📌 Reasons why crypto is easily exploited for scams:

  • Anonymity and decentralization make tracing money flows more difficult.

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

  • Regulatory frameworks are still being developed, creating opportunities for scammers to exploit.

Currently, regulatory bodies such as the European Union (EU) are tightening laws with AML (Anti-Money Laundering) regulations to protect investors and prevent financial crime in the crypto sector.

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⚠️ Risk Warning

Crypto is a field full of opportunities but also carries significant risks. Before investing, always:
✅ Carefully check the project, avoid chasing unrealistic profit promises.
✅ Only trade on reputable, licensed platforms.
✅ Update information from reliable sources to avoid being scammed.