OneCoin’s days in Norway appear to be numbered, following a request to the company’s Norwegian lawyer for information on local affiliates.

The Norwegian Gaming Board began investigating OneCoin in early 2016. In April the regulator sent OneCoin a refresher on Norwegian MLM rules and regulations.

The regulator followed this up with a request for confirmation the letter had been received, however as of October no reply had been received.

In a bit to get more information about the company, the Gaming Board requested an invite to a Norwegian OneCoin event earlier this year in March.

OneCoin failed to respond, so the Gaming Board attended of their own accord.

In an attempt to fend off Norwegian authorities after the event, OneCoin told the regulator it had “no business in Norway and no plans for it”.

Having attended a Norwegian OneCoin event and seen Norwegian OneCoin affiliates with their own eyes, the regulator called OneCoin’s bluff.

This is totally irrelevant for their efforts to prevent pyramid scheme operations in Norway, and their right to put the company on the spot.

There are many such companies that operated from abroad. But having no dedicated Norwegian branch is not an obstacle for us to scrutinize a company and possibly to cease activities that are illegal in Norway

Shortly after that response was made public, it was revealed Økokrim, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, had sent the Gaming Board an inquiry about OneCoin.

Things are now heating up, following the Gaming Board request for more information on the OneCoin’s Norwegian affiliates.

In a letter dated June 6th, the Gaming Board told OneCoin’s lawyer they “need information about individuals who operate OneLife OneCoin in Norway.

Specifically, the Gaming Board hopes to have Norwegian OneCoin affiliates provide documents that show they have

received revenue from a revenue system where compensation is paid … due to the sale or consumption of goods, services or other benefits, and not to other (participants) in the system.

In a nutshell, the Gaming Board wants OneCoin affiliates who have been paid commissions to demonstrate revenue to pay the commissions was obtained via retail sales.

As per OneCoin’s business model, the company has no retail customers.

Every OneCoin participant is an affiliate, with 100% of company revenue, which is used to pay commissions, sourced from new affiliate investment.

The Gaming Board has asked OneCoin to

provide names and addresses of those who operate OneLife and OneCoin in Norway by receiving commissions from OneLife and OneCoin who are residents of Norway.

As per the Norwegian Lottery Act, MLM companies that derive more than 50% of commission revenue from internal sources (affiliates), operate illegally as pyramid schemes.

OneCoin complying with the request for information on its Norwegian affiliates equates to the outing of pyramid scammers to the authorities.

Penalties for breaching Norway’s Lottery Act include fines or imprisonment for up to  three years. Accomplices share the same liability.