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- Four men have been charged with participating in a large-scale fraud and money laundering scheme
- Two defense attorneys assert that their clients had no involvement in the crypto scheme
Norwegian officials have accused four men of running an $80 million cryptocurrency scam; they allegedly moved the money through a law firm’s accounts.
Norway Prosecutes Four in $80M Crypto Case
On February 16, Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) announced charges against four men for running a major cryptocurrency scam. The scheme collected over 900 million Norwegian kroner ($80 million) from investors within and outside Norway.
Authorities say the money was moved through a law firm’s account and other accounts belonging to several different companies in Asia so it could hide its source. This case marks a major effort by Norwegian officials to fight financial fraud in Norway.
Økokrim state prosecutor Joakim Ziesler Berge described the case as one of the biggest investment scams impacting global investors in recent years. According to the report, the fraud involved a complex scheme that misled people into participating.
Victims joined a network where promotions were carried out using a multi-level marketing system. Recruitment happened through large events in various countries, with existing participants bringing in new paying members from their social circles.
Between March 2015 and November 2018, the alleged scheme convinced people to invest in what seemed like a highly profitable company. Investors were told they would receive shares and digital currency from the business.
Økokrim claims that investors were misled into believing the company owned valuable assets and made large investments in different industries. Those who joined were encouraged to buy “product packages” containing the company’s own cryptocurrency and stock, thinking they were gaining a share in a successful and profitable venture.
Økokrim also added that it can show that there were no real investments made and that the company had no other income apart from funds contributed by members.
The money collected from investors were then sent through complex channels to hide its origin before ultimately being paid out as “returns” to top recruiters, supporters, and earlier participants.
The four accused men age between their 50s, 60s, and 70s, and are all Norwegian nationals. Three of them are charged with having helped collect the money, while one of them is charged with having contributed to money laundering.
Defense Lawyers claims Clients’ Innocence in Crypto Fraud Trial
Christian Flemmen Johansen, speaking for one defendant, stated that his client rejects all claims and denies any connection whatsoever to the crypto scam scheme. Similarly, another attorney Ole Petter Drevland insisted that his client bears no legal responsibility.
Other Information on the legal counsel for the remaining two accused individuals has not been presented at the time of writing. The trial is set to begin at Oslo District Court in September and is expected to last for 60 days.
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