A Norwegian court has sentenced three individuals involved in the Crypto 888 Club scheme, a cryptocurrency-based pyramid operation that targeted investors through a multi-level marketing structure.
According to reports published on March 6, 2026, the verdict followed an eleven-week trial in which prosecutors presented evidence of the defendants’ central roles in organizing and operating the scheme.
The court sentenced:
- Terje Hvidsten (63) to 11 years in prison, along with confiscation of approximately 1 million Norwegian kroner (around $1.1 million);
- Dag Haetta Eriksen (54) to 9 years in prison, with confiscation of approximately 4 million NOK (about $2.6 million);
- Pal Andre Borsting Berntsen (53) to 6 years in prison, with confiscation of approximately 8 million NOK (around $1.8 million).
The court determined that the operation functioned as a pyramid scheme, where revenue primarily came from participants who paid to join the system rather than from legitimate economic activity.
Evidence presented during the trial showed that Hvidsten and Eriksen played central roles in establishing and managing the scheme, including overseeing financial flows and making key operational decisions. According to the judgment, communication records such as messages and emails demonstrated that they had a detailed overview of the movement of funds and determined how and to whom money would be transferred.
Hvidsten was also found to have presented himself as “Alexander Romanov,” a fictitious founder of the Crypto 888 Club, a role used to promote the scheme and attract participants.
The court noted that Berntsen acted in a subordinate role, operating under the direction of the two principal organizers.
During the proceedings, defense attorneys argued that prosecutors had misunderstood cryptocurrency-related operations. The court rejected this argument, concluding that the evidence clearly demonstrated the structure and functioning of a pyramid scheme.
Authorities initially charged four individuals in connection with the Crypto 888 Club operation in February 2025. One of them, Peter Forsberg (71), a lawyer accused of assisting with money laundering, fled Norway before charges were formally filed and is currently wanted internationally. Another individual has yet to face trial.
The ruling represents one of the more significant recent criminal judgments in Europe involving cryptocurrency-related pyramid schemes and demonstrates the increasing willingness of authorities to pursue complex financial fraud cases involving digital assets.
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