YEREVAN (CoinChapter.com) — Norwegian authorities have charged four men with running a crypto investment scheme that allegedly defrauded investors of over 900 million Norwegian kroner ($80 million). According to Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim), the crypto fraud scheme operated between March 2015 and November 2018.
State prosecutor Joakim Ziesler Berge said the case involves a large number of victims in multiple countries. He noted that significant sums allegedly ended up with the defendants.
Økokrim claims the suspects misled investors, making them believe they were buying shares in a successful business that invested heavily in gas, mining, and real estate.
The investigation alleges that the business did not generate revenue. Instead, new investor deposits were used to pay earlier investors, a structure often associated with Ponzi schemes.
Crypto Fraud Scheme Used Large Events to Attract Investors
The accused allegedly hosted major investment events worldwide to promote the scheme. They reportedly persuaded investors to buy packages that included cryptocurrencies and company shares. They also encouraged investors to recruit others, reinforcing the appearance of a profitable business.
Authorities claim the suspects made no significant investments and relied on new investor deposits to sustain the scheme. Økokrim states that the suspects transferred funds through multiple corporate accounts, making it difficult to track transactions.
$62M Allegedly Laundered Through Law Firm Accounts
Norwegian authorities allege that a local law firm and several companies in Asia processed over 700 million Norwegian kroner ($62 million). Økokrim states that the suspects structured financial transactions to obscure the movement of funds.
Investigators report that the suspects used client accounts and international corporate entities to complicate tracking efforts. Økokrim says this strategy prevented authorities from quickly uncovering the final destination of the money.
Defendants Face Charges in Oslo District Court
Moreover, the four men, aged 50s to 70s, face charges related to fraud and money laundering. Three are accused of collecting funds from investors, while the fourth is charged with assisting in laundering money.
Defense lawyer Christian Flemmen Johansen said his client denies the allegations. Another lawyer, Ole Petter Drevland, also stated that his client does not accept criminal responsibility. Legal representation for the remaining two defendants was not immediately available.
Photo: VIGDIS HELLA / NRK
The Oslo District Court will begin the trial in September, and it will run for over 60 days.
