- Norwegian authorities have charged four men in an $86.5 million cryptocurrency investment fraud case operating between 2015-2018.
- The scheme operated through multiple rebranded entities including Crypto888 Club, Octa Partners, and Nano Club, offering fake yield-bearing “product packages.”
- Over $62.7 million was laundered through a Norwegian investment firm and various Asian accounts.
- Two of the accused, Terje Hvidsten and Dag Hætta Eriksen, have previous fraud convictions.
- The case will be tried in Oslo District Court over 60 days starting September 2024.
Norwegian authorities have indicted four men for operating a sophisticated cryptocurrency investment scheme that defrauded investors of NOK 963 million ($86.5 million) over three years, marking one of the country’s largest digital asset fraud cases to date.
Økokrim, Norway’s financial crime authority, filed an indictment alleging the accused ran a multi-level marketing scheme through various entities offering fraudulent cryptocurrency investment packages. The operation cycled through multiple brands, including Crypto888 Club, Octa Partners, and Nano Club, targeting victims across Sweden, Belgium, the Netherlands, and China.
The defendants, including former art dealer Terje Hvidsten and Dag Hætta Eriksen, both with previous fraud convictions, allegedly created a complex web of deception. Two other accused individuals include a 52-year-old from Romerike and a 70-year-old former lawyer who allegedly facilitated money laundering operations.
State Prosecutor Joakim Ziesler Berge emphasized the scale of the operation: “We believe this is a large and extensive fraud. We are talking about a great many victims in many countries who have lost their money, and significant sums that have ended up with the defendants.”
According to cryptocurrency fraud expert Sarah Twohig from Pinsent Masons, such schemes are becoming increasingly prevalent. Recent Chainalysis data shows crypto scams received at least $9.9 billion in on-chain value in 2024, with high-yield investment schemes being particularly lucrative for fraudsters.
The European Union’s Markets in Crypto-Assets Regulation (MiCA) is being implemented to combat such fraudulent activities by imposing stricter requirements on crypto-asset service providers and implementing robust anti-money laundering measures.
The trial is scheduled to begin in September at the Oslo District Court, with proceedings expected to last 60 days. This case represents a significant milestone in Norway’s efforts to combat cross-border cryptocurrency fraud and protect international investors.
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