Fredrik Ekersund is one of Daxio's most prominent representatives in Sweden.
On November 7, 2022, Daxio organized a recruitment meeting at the Aurum Hotel. On the stage in the large conference hall stood Fredrik Ekersund from Skellefteå, a prominent member of the company.
He talked about Daxio and how you can make money if you join. The meeting is well attended. Judging from the pictures, there are at least thirty people there.
Daxio's operations are multifaceted and difficult to explain simply. Users register on the company's site and are then allegedly given the opportunity to earn money by, for example, playing games on their mobile phones. The money is said to come from, among other things, users' voluntary purchases on the Daxio digital platform.
It is also possible to deposit money into the so-called Daxiobot. There the money is said to be managed by a team of experts, who buy and sell odds on betting exchanges all over the world in order to maximize the return.
A person who wishes to remain anonymous talks about his concerns:
"In my opinion, the scheme covers a whole range of crimes. There are many in Skellefteå who will lose money," writes the anonymous source..
According to Daxio's own statistics, there are more than 5,000 users in Sweden. The company has also recently gained a firm foothold in Skellefteå. According to Daxio, there are approximately 140 members in town – and informational meetings are held on Sunday evenings.
The business that is today called Daxio has had several names in recent years, including Betplay365 and Global Game Arena. Daxio is operated through a shell company in the British Virgin Islands, a notorious tax haven.
All transactions are made with cryptocurrency, a digital currency without a central authority. Daxio uses its own variant of the cryptocurrency, Ethereum. The coins are called "Daxio tokens". The more people you recruit to Daxio the larger the bonus you get. The participants themselves are responsible for ensuring that any winnings are recorded and taxed correctly. It costs nothing to participate, but you have to invest money to be able to withdraw any winnings.
On Daxio Sweden's website, examples are given of members who are said to have prospered from the business. One person describes how he was previously addicted to gambling but was now able to pay off his debts.
"Thanks to Daxio, I can pay my debts and live a normal life. Thank you Daxio for changing my life!”, says the website.
On Daxio Sweden's website, a user claims that he was able to pay off his gambling debts with the help of Daxio.
But there are state watchdogs critical of Daxio. The Norwegian Gambling Authority, for instance, considers Daxio to be a pyramid scheme.
– We believe it appears to be a pyramid scheme. Many who invest money do not know what they are getting into and can be tricked into losing their money, Silje Sægrov Amble, a lawyer at the Norwegian Gambling Authority, told Norran.
Silje Sægrov Amble, lawyer at Norwegian Gambling Authority, says that Daxio appears to be a pyramid scheme.
The Swedish Gambling Authority has received about twenty queries and complaints from the public about Daxio. However, the authority has not opened an investigation of its own – partly because it is not entirely clear whether Daxio might fall under the category of "pyramid scheme" or "investment fraud".
– The fact that other countries' authorities have warned Daxio should be a red flag for potential participants in Sweden, says Marcus Aronsson of the Swedish Gambling Authority.
– Pyramid gambling is illegal. It is also a crime to promote participation in such games. If you establish, recruit or spread information about pyramid schemes, you may be suspected of possible crimes, warns Aronsson.
Trijo, Sweden's largest cryptocurrency exchange, has also chosen to block transactions to and from Daxio in light of the Norwegian authorities' warning.
Martin Byström, CFO and expert at the crypto exchange Trijo, believes that Daxio is a "scam".
– This is a scam. We have made an overall assessment of the company. It is a big warning sign that you guarantee a certain return and manage your recruitment through a pyramid scheme. We don't want our platform to be used for fraud, says Martin Byström, CFO at Trijo.
Daxio's co-founder and head of development, Frode Jørgensen, disagrees with the "pyramid scheme" tag.
– Nothing that Daxio does is close to being a pyramid scheme. I think "pyramid" is a word that is often misused, he says.
– You can have a structure where you get bonuses if you recruit people, but that doesn't necessarily mean that whoever came first earns the most, Jørgensen says, drawing parallels with Daxio's model to other companies' reward systems for loyal customers.
Jørgensen is also dismissive of the criticism Daxio has attracted from state watchdogs.
– What often happens when you start a new business that grows quickly is that a couple of people contact the Norwegian Gambling Authority and ask if it is legal, he says.
– And the Norwegian Gambling Authority is a body that controls gambling, which Daxio doesn't even do.
Jørgensen does, however, admit it's possible to lose money on Daxio.
– You can, for example, create an arcade game tournament together with other players, which you can choose to pay money to participate in. If you then lose the tournament, then you also lose money. But we are not responsible for that, he says.
Jørgensen is insistent that Daxio is not a pyramid scheme.
– For a pyramid to be a pyramid, the money must be traded inside the pyramid. But that is not the case in Daxio. I am very proud of Daxio; we started just before the pandemic and during this difficult time we have offered entertainment to our members. We have improved the lives of thousands of people, he says.
READ MORE: Read the entire interview with Frode Jørgensen here. (In Swedish)
Footnote: Norran has repeatedly asked Fredrik Ekersund for a comment. We have called, texted, contacted him on social media, and tried to reach him through relatives. Other Daxio members have also contacted Ekersund to tell him we are looking for him. However, he has chosen not to respond.
FACT BOX
Aspects of a commercial venture that may indicate it is a pyramid scheme:
Do you have to buy a starter pack/training pack to join, and is it a requirement that you have to recruit new participants to the concept, or sell starter packs/training packs to new customers?
What does the company behind the concern want to achieve – to get as many participants as possible or sell as many products as possible?
Is it not possible to buy a product without becoming a distributor yourself?
Is it suggesting that you can earn money without having to do anything?
Is it emphasized that it's a unique opportunity to join at the start of the business and that it is those who join at the start who will earn big profits?
Does the business not tell you directly about the concept but insists you have to attend a special meeting during which a spokesperson for the business will describe it?
If something seems too good to be true, it usually is! If passive income is mentioned, there is always a catch. As a rule, consumers usually invest large sums and when the pyramid scheme collapses, this money goes up in smoke.
Source: The Swedish Gambling Authority