Daxio's co-founder has gone "underground"

Daxio's co-founder Frode Jørgensen claims that he is in a secret location after "hitmen were after him". He also admits that much of Daxio's money has been lost.

Frode Jørgensen claims that hitmen have tried to kidnap him.

Frode Jørgensen claims that hitmen have tried to kidnap him.

Foto: Kollage

Skellefteå2023-02-17 09:17

Daxio's co-founder Frode Jørgensen claims he is in a secret location after "hitmen were after him". At the same time, he says that much of Daxio's money has been lost. In a post on the Discord platform, Jørgensen explains to Daxio's members that he has gone underground and is in a secret location. This after "hitmen" allegedly came to his home to kidnap him.

“I have lost everything that I worked hard for in the last 20 years. This has forced me to leave the country I love most in the world. However, I'm not far away and I am currently in hiding at a safe house. This is the reason behind my silence the last week," he writes.

"Because of the Daxio bot, last week I have had hitmen come to my house, I was attempted kidnapped, but I managed to get away" 

Over several days, Norran has investigated Daxio, a company that has gained a strong foothold in Skellefteå. According to Daxio themselves, there are approximately 140 members in town and regular local meetings are held. However, authorities are concerned that the company has raised several red flags and several experts say it appears to be a pyramid scheme or investment scam.

Excerpt from Frode's post. He describes "a growing cancer" within Daxio.

After Norran's investigation Daxio's own currency SDAX plummeted in value. Several observers see this as evidence that the business has collapsed.

In his lengthy post, Jørgensen admits that Daxio has lost a lot of money over the past nine months. He says it is due, among other things, to general instability in the crypto market.

"The biggest mistake Daxio made was pricing everything in euros and dollars, while operating with cryptocurrency. This really created financial problems, not just during the past 8-9 months, but as we progressed. The snowball effect made the problem bigger and bigger"." he writes.

"There are members presenting Daxio as an investment scheme: be aware that this action has given nutrition to the cancer that might eventually kill Daxio," Jørgensen continues.

"There are members sharing private information openly with media."

It is not clear exactly why Jørgensen would be hunted by hitmen. However, he writes that it has to do with the so-called Daxio bot and that members have found ways to cheat the system.

Norran has investigated the suspected Daxio pyramid scheme over several days.

The Daxio bot is said to work so that one's money is managed by a team of experts, who buy and sell odds on betting exchanges all over the world in order to maximize returns.

"The Daxio bot has destroyed Daxio and everything Daxio stands for. We have found ourselves in a very difficult situation," writes Jørgensen. "Because of the Daxio bot, last week I have had hitmen come to my house, I was attempted kidnapped (sic), but I managed to get away." 

When local Skellefteå Daxio members tried to recruit Norran's reporters, they presented the business as an investment opportunity. In an interview with Norran, Jørgensen has been very clear that he does not want to call Daxio an "investment", but rather a game.

He returns to this in his post.

“Members have presented Daxio as an investment opportunity. You should be aware that this has fed the cancer that in time can kill Daxio. [...] Members have also shared private information openly with the media. This is a direct cause of many of our problems right now.”

Jørgensen has consistently denied the accusations that Daxio is a pyramid scheme or a fraud. The fact that he has disappeared recently is completely in line with what happens when this type of company collapses, according to crypto expert Totte Löfström.

– Those behind the business usually go underground. They may be worried about police being after them or that people will take civil legal action, he says.

Totte Löfström is one of Sweden's leading experts on cryptocurrency.

In recent days, Daxio's currency has continued to fall in value. But Jørgensen ends his post by stating that it is "not game over yet".

"Good will always beat bad," he writes.

Norran is looking for Jørgensen. Norran has also contacted Daxio members locally in Skellefteå. However, they do not want to comment.

Do you know more? Get in touch with us via tipsa@norran.se.

Daxio's own currency has continued to fall in value.