Norwegian Authorities Charge Four Men In Alleged Crypto Fraud Scheme

According to Cointelegraph, Norwegian authorities have charged four men in connection with an alleged cryptocurrency investment scheme that defrauded thousands of investors and laundered the proceeds through a law firm's accounts. Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime, known as Økokrim, announced on February 16 that the scheme reportedly amassed over 900 million Norwegian kroner, equivalent to $80 million, from victims across the globe. Økokrim state prosecutor Joakim Ziesler Berge described the operation as a significant and widespread fraud, highlighting the large number of victims from various countries who lost their investments. The victims were reportedly misled into believing they were investing in a lucrative business with substantial investments in sectors such as gas, mining, and real estate. However, Økokrim claims that the scheme made no real investments and generated no profits, relying instead on existing investors to recruit new ones. The investigation revealed that over 700 million Norwegian kroner, or approximately $62 million, was allegedly laundered through the accounts of a local law firm and several companies in Asia. The complexity of the scheme was compounded by the use of client accounts and company structures both in Norway and internationally, making it challenging to trace the funds. The state-run Norwegian Broadcasting Corporation (NRK) reported on February 17 that the accused are Norwegian men in their 50s, 60s, and 70s, who allegedly operated the scheme from March 2015 to November 2018. Three of the men face charges related to collecting the funds, while the fourth is accused of aiding in money laundering. Christian Flemmen Johansen, representing one of the defendants, stated that his client denies any involvement in the scheme. Similarly, lawyer Ole Petter Drevland, defending another accused, asserted that his client rejects any criminal responsibility. Information regarding the legal representation of the other two defendants was not immediately available. The case is scheduled to be heard in Oslo District Court in September and is expected to last over 60 days.