Norway’s Cryptocurrency Investment Scam
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Four men in Norway have been accused of running a large cryptocurrency fraud. They allegedly tricked people into investing nearly $86.5 million from 2015 to 2018.
The Norwegian financial crime police, Økokrim, say these men promised big profits but never made real investments. To this end, what they were into was using money from new investors to pay old ones, a system called a Ponzi scheme.
The Nature of the Crime
According to Økokrim, the four men told people to invest in special financial packages. These packages included cryptocurrency and company shares, but they were fake. People believed they were buying something valuable, but the company had no real business. The only money in the system came from new victims who were tricked into investing.
The accused men are all Norwegians, aged between their 50s and 70s. Three of them allegedly collected the stolen money, while the fourth helped to launder it. Økokrim believes they hid over $62.7 million using a Norwegian investment company and Asian bank accounts. This made it difficult for the authorities to track the stolen money.
Fake Cryptocurrency Companies and Investment Scams
Investment fraud, especially involving cryptocurrency, is increasing in Norway and around the world. Many criminals use digital money to trick investors.
To this end, the fraud was run under different business names, including Crypto888 Club, Octa Partners, and Nano Club. However, each time one scheme failed, a new one was started to attract investors. These companies also created their cryptocurrency, such as OctaCoin, NanoCoin, and Ormeus Coin. They promised investors monthly profits, but the money came from new victims rather than real earnings.
Some of the accused have been identified. One of them, Terje Hvidsten, was previously convicted of fraud and is already in jail for another crime. Another, Dag Hætta Eriksen, has a history of corruption. The other two men have not been named but include a 52-year-old from Romerike and a 70-year-old former lawyer. One denies the charges, while the others have refused to comment. Their trial will begin in Oslo in September and last for 60 days.
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