Daxio has received a pyramid scheme fraud warning from the Norwegian Gambling Authority (Lottstift).
Lottstift issued its Daxio fraud warning via a May 20th letter addressed to “Daxio Norge”. Frode Jorgensen is identified as Daxio’s CEO.
Lottstift notes that is previously sent correspondence to Jorgensen regarding Global Game Arena (GGA) in 2019.
GGA was a Ponzi scheme Jorgensen launched in 2019.
After collapsing three times, Jorgensen rebooted GGA as Daxio in mid 2020.
After confirming Daxio is “a continuation of Global Game Arene Ltd”, Lottstift states the reason they are writing to Daxio is to provide “information for everyone involved in the business about the rules … for pyramid schemes”.
The letter goes on to suggest Lottstify has opened an investigation into Daxio.
The Norwegian Lotteries Authority shall check that the Lottery Act is complied with.
It is forbidden to create, operate, participate in or distribute pyramid scheme or similar system, this is stated in the Lottery Act.
The Lottery Act’s ban on pyramid schemes and pyramid-like trading systems applies direct sales concepts where more than half of the revenue comes from membership fees and the like.
With in other words, it is a requirement that real goods or services are sold in the business, and the turnover from this must amount to at least 50% of the income of the business, so that it is not an illegal pyramid-like turnover system.
As per BehindMLM’s published Daxio review, the company has no retailable products and services.
The Norwegian Lotteries Authority assumes that the company’s activities are built up in a pyramid structure with several others
level where participants can achieve financial gain by recruiting new participants at a lower level.We have registered that there have been information meetings aimed at Norwegians, and that people living in Norway are recruited into the business.
Based on the knowledge we have, we suspect that the company is a pyramid scheme.
You recruit participants, and sells investment product with uncertain value and with promise of high income.
Our advice is that people should stay away and not bet or invest money in pyramid schemes, investment fraud and other similar scams.
Based on the information we have, it appears that Daxio also mediates gambling that does not have permit in Norway.
Gambling that is not licensed in Norway is prohibited under the Lottery Act and the Gambling Act to offer, market and mediate, including mediate payment.
Since this letter is aimed at all participants in the company’s operations in Norway, we expect you convey the letter to these participants.
Lottstift goes on to advise Daxio to “immediately cease” business operations in Norway.
Daxio operates through a shell company incorporated in the British Virgin Islands.
BVI is a scam-friendly jurisdiction that immediately raises red flags for any MLM company representing ties to it.
Daxio operates from the domains “daxio.com” and “mydaxio.com”.
SimilarWeb reports a decline in traffic to both domains over the past three months. Such to the extent Daxio is active in Norway, recruitment appears to be insignificant.
Top sources of traffic to “daxio.com” are Malta (36%), Vietnam (30%) and Sweden (15%). “Mydaxio.com” traffic is led by Sweden (45%), Hungary (18%) and Moldova (17%).
Frode Jorgensen is a Norwegian citizen based out of Thailand.