Crypto scam uncovered in Norway. Credit: Pexels, Alesia Kozik
Norwegian authorities have charged four men for orchestrating a massive cryptocurrency fraud scheme that deceived thousands of victims across multiple countries.
According to Norway’s economic crime unit, 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 unearthed in Norway
Victims were lured into the scheme via a multi-level marketing structure, promising lucrative returns from investments in gas fields, mining, and real estate. Participants were encouraged to buy “product packages” that included proprietary cryptocurrencies 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.
If you’re wondering what a Ponzi scheme is, it’s a kind of financial fraud in which money from newer investors is used to pay returns to previous investors instead of money from actual business profits. This gives the appearance of a successful business endeavour, but since no actual profits are made, the plan ultimately fails when new investments slow down or investors begin taking their money out.
Four individuals have been charged: Terje Hvidsten, a former art dealer with a history of fraud, who has been in prison since 2024 for another financial crime. 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.
International victims of Norwegian Ponzi scheme
Thousands of investors, mainly from Sweden, Belgium, the Netherlands, and China, were caught in the scam, transferring funds under the belief they were purchasing shares in profitable ventures. The operation ran under various branding names, including Crypto888 Club, Octa Partners, and Nano Club, with each version introducing its own cryptocurrency such as OctaCoin, NanoCoin, and Ormeus Coin.
Økokrim’s investigation revealed that some funds were allegedly used for personal luxuries, including property purchases in Spain and high-end vehicles.
Regulatory experts warn that cryptocurrency-related scams are becoming increasingly common. According to Sarah Twohig, a lawyer specialising in crypto fraud, fraudsters exploit the decentralised nature of digital assets to obscure transactions, making it challenging for authorities to trace stolen funds.
To address these risks, the EU’s Markets in Crypto-Assets Regulation (MiCA) is set to impose stricter rules on crypto-asset service providers, while the EU’s new anti-money laundering (AML) package aims to prevent the misuse of digital currencies for financial crimes.
The trial is set to begin in Oslo District Court in September and will last approximately 60 days, as reported by DN.
View all news in Norway.
