Norwegian authorities have charged four men for allegedly fleecing thousands of investors in a crypto investment scheme and then laundering the ill-gotten gains through the accounts of a law firm.
Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime, or Økokrim, said in a Feb. 16 statement that it alleges the scam collected upward of 900 million Norwegian kroner ($80 million) from victims worldwide.
“We believe this is a large and extensive fraud,” Økokrim state prosecutor Joakim Ziesler Berge said.
“We are talking about a large number of victims in many countries who have lost their money and significant sums that have ended up with the defendants.”
Økokrim alleged victims were duped into thinking they were receiving a share in the investments and profits of an extensive and highly profitable business that made significant investments in gas, mining operations and real estate.
The alleged schemers snared investors through presentations at major events in several places worldwide, promising investment packages containing the company’s cryptocurrencies and shares.
Økokrim alleged the scheme made “no significant investments” beyond these deposits and had no earnings while existing investors recruited fresh investors from friends and acquaintances.
Norwegian authorities also alleged 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 work of uncovering what happened to the money,” Økokrim said.
The state-run Norwegian Broadcasting Corporation (NRK) reported on Feb. 17 that the four alleged schemers are all Norwegian men in their 50s, 60s and 70s who operated the scheme between March 2015 and November 2018.
Three of the men are charged with helping collect the money, while the fourth is charged with contributing to money laundering.
Related: Indian authorities seize $190M in crypto tied to BitConnect Ponzi scheme
Acting for one of the defendants, Christian Flemmen Johansen from Flemmen & Co Law Firm, said 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.
The case is due in Oslo District Court in September and is expected to run over 60 days.
Magazine: Korea to lift corporate crypto ban, beware crypto mining HDs: Asia Express
