Friday, November 15, 2024

Estonian Police Arrested Founders Of The DagCoin Ponzi Scheme.

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Estonian police arrested four DagCoin executives, including OneCoin alumni and DagCoin founder Nils Grossberg and Kris Ress (aka Kristjan Ress). The men are charged with having provided false information to sell DagCoins, thereby making nearly €8 million, the Estonian police said in an announcement. Essentially, the DagCoin scheme was designed like the infamous OneCoin of crypto queen Ruja Ignatova and was sold through a multi-level marketing system.

According to behindMLM, Nils Grossberg has been a high-ranking OneCoin member before he left to establish DagCoin, with was promoted via Success Factory, a MLM marketing scheme founded by the high-ranking Dutch OneCoin promotors Igor Alberts and Andreea Cimbala.

Allegedly, the suspects artificially inflated the price of DagCoin and the number of its users to make a profit, creating a public perception of a functioning virtual currency that keeps increasing in value and can be used as a means of payment or for generating income from its deposit. The public prosecutor’s office speaks of false and misleading information and market manipulation in this context.

The DagCoin Ponzi scheme used Estonian companies with crypto licenses to sell DagCoins. The licenses issued by the Estonian FIU gave investors the confidence and the courage to put their money into DagCoin.

Nils Grossberg, 44, and Kriss Ress, 33, own several companies related to the DagCoin scheme and have been involved in the scheme from the outset.