Norwegian authorities have charged four men in connection with an alleged cryptocurrency scheme that defrauded thousands of investors worldwide out of an astonishing $80 million. The National Authority for Investigation and Prosecution of Economic and Environmental Crime, also known as Økokrim, announced these charges following extensive investigations into the fraudulent operation.
The scheme, which reportedly ran from March 2015 to November 2018, is said to have collected over 900 million Norwegian kroner (approximately $80 million) from victims by promising lucrative returns through investments in gas, mining operations, and real estate. Økokrim’s state prosecutor, Joakim Ziesler Berge, confirmed that many victims were led to believe they were investing in a legitimate business and were subsequently lured by elaborate presentations held at various global events.
According to Økokrim, the alleged fraudsters managed to launder more than 700 million Norwegian kroner (around $62 million) through local law firm accounts and other companies in Asia. This money laundering tactic complicated the investigation and obscured the flow of funds, making it difficult for authorities to trace where the money ended up.
The defendants are all Norwegian men in their 50s, 60s, and 70s, with two of them facing charges related to collecting the investment funds, while the fourth is charged with facilitating the money laundering aspect of the operation. As this scandal unfolds, the lawyers representing the accused have vigorously denied the allegations, asserting that they will mount a strong defense in court.
As the investigation continues, Økokrim has underscored the serious implications of such fraud on unsuspecting investors, emphasizing that cryptocurrency scams, including Ponzi schemes and pyramid schemes, thrive in markets lacking regulatory oversight. The upcoming trial in Oslo District Court, slated to begin in September, is expected to attract significant attention as it spans over 60 days.
