"Norway Charges Four in $86M Crypto Fraud Scheme"

Norway's economic crime agency, Økokrim, has charged four individuals in connection with a massive cryptocurrency investment fraud scheme that defrauded investors of over NOK 963 million ($86.5 million) between 2015 and 2018. The defendants, all Norwegian men aged in their 50s, 60s, and 70s, allegedly operated a multi-level marketing (MLM) scheme, also known as a Ponzi scheme, under various names such as Crypto888 Club, Octa Partners, and Nano Club.

The fraudulent operation promised high returns to investors by offering yield-bearing "product packages" containing cryptocurrencies and shares. However, Økokrim alleges that the accused network made no real investments and had no earnings beyond the deposits of victims. The proceeds were laundered through a Norwegian investment firm and forwarded to linked accounts in various Asian countries, totaling over NOK 700 million ($62.7 million).

The indictment names two of the defendants: Terje Hvidsten, a former art dealer with previous convictions for fraud, and Dag Hætta (formerly Verner) Eriksen, who has similar convictions for corruption and fraud. The other two defendants, a 52-year-old from Romerike and a 70-year-old former lawyer, have not been named. The 52-year-old has denied criminal liability, while Hvidsten's attorney has stated that their client objects to the indictment's description of him. The two other defendants have refused to comment, and the case is scheduled to take place in Oslo District Court over 60 days from September.

Økokrim State Prosecutor Joakim Ziesler Berge stated, "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." He also noted that investment fraud is a growing problem in Norway and internationally, with experts echoing this description.

Sarah Twohig, a regulatory disputes lawyer specializing in crypto fraud at multinational law firm Pinsent Masons, told Decrypt that investment fraud involving cryptocurrencies is increasingly common in Europe and globally. According to the latest Chainalysis Crypto Crime Report, high-yield investment and 'pig butchering' sc