Nils Grossberg and Kristijan Ress, alleged operators of the Dagcoin Ponzi scheme, were released by Estonian authorities in December, two months after their arrest. The pair, accused of running the cryptocurrency fraud from Estonia, had been denied bail and remanded into custody following their apprehension in October.
The order for their pre-trial detention expired in mid-December. Estonian law limits such detentions to two months unless new grounds for extension are established. Prosecutors confirmed their release, noting that while the men are free from custody, they remain under suspicion.
Estonian authorities estimate Dagcoin losses at roughly $8 million. Investigators expect this figure to climb significantly as the probe continues. The scheme promised investors high returns on a proprietary digital currency called Dagcoin, operating largely on a multi-level marketing structure that rewarded recruitment over actual product sales. Funds from new investors were used to pay earlier participants, a hallmark of a Ponzi operation.
Dagcoin was marketed extensively through Success Factory, a Netherlands-based entity. Former OneCoin promoter Igor Alberts led Success Factory. Alberts began distancing himself from Dagcoin in late 2021 as the scheme collapsed. This pattern of disassociation mirrored his exit from the OneCoin scam, another notorious cryptocurrency fraud that defrauded investors globally.
Coinciding with the arrests in Estonia, the Dutch Financial Intelligence and Investigation Service (FIOD) raided Success Factory's offices in the Netherlands. FIOD agents in Amsterdam sought physical and digital evidence related to investment fraud, according to confirmation from the Estonian public prosecutor's office. No criminal charges have been filed in the Netherlands to date. Dutch authorities have offered limited public comment on their involvement, citing ongoing investigative sensitivities. No Dutch nationals have been identified as suspects in the case.
Grossberg and Ress were reportedly released "without restrictions," provided they cooperate with police requests. This arrangement allows them freedom of movement, including the ability to leave Estonia. Such a condition raises concerns for victims and investigators about potential flight risks in international fraud cases.
Success Factory plans to hold a "5th anniversary" event in Dubai on February 24. FD, a Dutch publication, attempted to contact Cornelius Engelhardt, Success Factory's operational director in Amsterdam. Engelhardt abruptly ended the call, stating he was "not interested" in an interview.
Success Factory's website currently lists contact details for a shell company incorporated in Delaware. Between October and November 2022, web traffic to Success Factory's site saw an increase. SimilarWeb data indicates Saudi Arabia accounted for 49% of visitors, Mexico for 9%, and Russia for 6%. Traffic originating from Estonia dropped by 77% month-on-month, falling to just 3%. The scheme had previously aimed to expand its operations into the United States market following a hyped launch in early 2022. Estonian prosecutors have stated that "appropriate action" will be taken if evidence analysis reveals more individuals involved in criminal activities.