Norway Charges Four in $80M Crypto Scam

Norway's National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) has charged four individuals for allegedly orchestrating a crypto investment scheme that defrauded thousands of investors worldwide. The alleged scam collected over 900 million Norwegian kroner ($80 million) from victims, with the ill-gotten gains laundered through the accounts of a law firm.

The scheme, which operated between March 2015 and November 2018, promised investors a share in the profits of an extensive and highly profitable business that made significant investments in gas, mining operations, and real estate. Investors were lured through presentations at major events worldwide, with the promise of investment packages containing the company's cryptocurrencies and shares. However, Økokrim alleges that the scheme made "no significant investments" beyond these deposits and had no earnings. Instead, existing investors recruited fresh investors from friends and acquaintances.

Økokrim alleges that over 700 million Norwegian kroner ($62 million) was laundered through the accounts of a local law firm and other accounts of several different companies in Asia. The use of client accounts and company structures in Norway and internationally has complicated the investigation into the whereabouts of the money.

The four alleged schemers are all Norwegian men in their 50s, 60s, and 70s. Three of the men are charged with helping collect the money, while the fourth is charged with contributing to money laundering. The case is due in Oslo District Court in September and is expected to run over 60 days.

Acting for one of the defendants, Christian Flemmen Johansen from Flemmen & Co Law Firm, stated that his client refutes the allegations and his role in the scheme. Meanwhile, lawyer Ole Petter Drevland, who was defending one of the other men, said his client denies criminal responsibility in the case. Information for lawyers acting on behalf of the other two defendants was not immediately available.