Crypto Fraud in Norway: When Will Investors Learn?
Norwegian authorities have charged four men with running a massive crypto scam that defrauded thousands of investors out of NOK 900 million (about $86.5 million).
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According to Økokrim, the country’s financial crime agency, the fraudsters operated in an organized manner and used a multi-level marketing structure. Between March 2015 and November 2018, they presented fake crypto and shares-related products to victims, promising high returns.
Four Norwegian nationals in their 50s, 60s, and 70s have been charged with large-scale fraud and money laundering, local media outlet DN reports.
The defendants are former art dealer Terje Hvidsten, Dag Hætta—previously convicted of multiple corruption and fraud cases – a former lawyer, and a craftsman from Romerike.
Joakim Ziesler Berge, State Prosecutor at Økokrim, stated:
We believe this is a large and extensive fraud. We are talking about a large number of victims in many countries who have lost their money, and significant sums that have ended up with the defendants.
The accused men are alleged to have orchestrated a complex Ponzi scheme, promoting “product packages” at large events across various countries and recruiting new members through existing network members.
They laundered the generated profits through the accounts of a Norwegian law firm before transferring the funds to companies in Asia, making it difficult to track the money flow.
Økokrim’s indictment reveals that victims from China, Belgium, Sweden, the Netherlands, and other countries sent money to scam projects Crypto888 Club, Octa Partners, and Nano Club.
Ziesler Berge said the fraud was international and that there were few Norwegian victims. He noted that this type of fraud – where the offenders are in one country while the victims are in another – has become increasingly common.
While investors believed they were putting money into crypto and shares, their funds actually went to offshore gas fields, mining operations, and real estate. The investigation found that the money came from new recruits rather than any legitimate business activity.
The trial is scheduled to begin in September 2025 at the Oslo District Court and is expected to last 60 days.
Why Do People Keep Falling for Crypto Scams?
By now, you’d think people would stop falling for crypto scams, right? We’ve seen case after case of fraudsters using the same tricks. Yet, investors keep getting sucked in. Why?
For starters, it’s the promise of quick, massive returns. Crypto’s air of mystery and complexity makes it easy for scammers to sound convincing. They dangle the idea of getting in early on “the next big thing,” and people rush in, hoping to strike gold.
Ponzi schemes in crypto follow the same pattern every time. Scammers promise high returns, use new investors’ money to pay fake profits to early adopters, and rely on fresh recruits to keep the cycle going. But once new investments slow down, the whole thing collapses – leaving most people with empty wallets.
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A big reason people fall for it? FOMO – fear of missing out.
When crypto prices surge and influencers hype up new projects, investors panic, thinking they’ll miss their shot at becoming millionaires. Scammers exploit this with flashy marketing, fake testimonials, and even celebrity endorsements.
Another issue? Many investors don’t fully understand blockchain, crypto, or even basic investment principles. Instead of doing solid research, they trust word-of-mouth recommendations – sometimes from friends who are also unknowingly caught in the scam.
One dangerous type of scam is pig butchering – where fraudsters build trust over time, often through social media or direct messages, before convincing victims to invest.
These fake platforms can look incredibly realistic, with professional dashboards showing fabricated profits. Victims feel safe adding more money – until one day, everything vanishes.
So, how can you protect yourself? First, always verify the platform – check for official registrations and reviews from trusted sources. Be skeptical of unsolicited investment advice, even from someone you know.
Do your research, and remember – if it sounds too good to be true, it probably is.
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