Norwegian authorities have charged four men for allegedly orchestrating a large-scale crypto investment fraud, defrauding thousands of investors worldwide and laundering illicit proceeds through a law firm’s accounts.
The National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) announced on Feb. 16 that the scheme siphoned over 900 million Norwegian kroner ($80 million) from unsuspecting victims.
A Sophisticated Crypto Scam
Økokrim claims that the accused misled investors into believing they were purchasing shares in a lucrative business with substantial investments in gas, mining, and real estate. However, state prosecutor Joakim Ziesler Berge stated that the scheme was merely a facade, making no real investments beyond initial deposits.
“We believe this is a large and extensive fraud,” Berge noted. “A large number of victims across multiple countries have lost their money, with significant sums ending up with the defendants.”
A Multi-Layered Deception
Investigators revealed that the suspects lured investors through high-profile presentations at major global events, promising lucrative returns via investment packages comprising cryptocurrencies and company shares. However, authorities claim the operation had no legitimate earnings and functioned as a Ponzi scheme, where funds from new investors were used to pay off earlier participants.
Money Laundering Through a Law Firm
Norwegian authorities further allege that approximately 700 million Norwegian kroner ($62 million) was laundered through a local law firm’s accounts and multiple companies in Asia. Økokrim highlighted the use of complex company structures across Norway and international jurisdictions, making it difficult to trace the illicit funds.
“The use of client accounts and company structures in Norway and internationally has complicated the work of uncovering what happened to the money,” Økokrim stated.
According to the Norwegian Broadcasting Corporation (NRK), the four accused men—aged in their 50s, 60s, and 70s—operated the scheme between March 2015 and November 2018. Three of them face charges for soliciting investor funds, while the fourth is accused of money laundering.
Defense lawyers for two of the defendants, Christian Flemmen Johansen and Ole Petter Drevland, have denied their clients’ involvement in any criminal activity. Information on legal representation for the remaining two was not immediately available.
Also Read: Norway’s $144M Bitcoin Exposure – Accidental Or Calculated?
The trial is set to begin in Oslo District Court in September and is expected to last over 60 days. The case marks one of Norway’s largest crypto fraud prosecutions to date.
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