Four Norwegians Charged with $80 Million Cryptocurrency Fraud

The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, Økokrim, has charged four citizens with orchestrating a cryptocurrency fraud scheme and money laundering.

According to the authorities, the individuals operated between 2015 and 2018. They attracted potential victims by offering shares in a purportedly profitable business involved in mineral extraction investments.

The fraudsters promoted the scheme at major conferences, allowing interested parties to invest in exchange for shares and the company’s own cryptocurrency. However, the company “made no significant investments” and did not generate profits. Investors themselves also participated in recruiting new victims.

The scheme caused over $80 million in damages to victims worldwide. Law enforcement suspects that approximately $62 million was laundered through accounts of a local law firm and several companies in Asia.

“The use of client accounts and company structures in Norway and abroad complicated efforts to trace what happened to the money,” noted Økokrim.

Lawyers for two of the individuals stated that their clients deny involvement in the scheme.

The court hearing is scheduled for September and will last 60 days.

Earlier reports from Chainalysis experts indicated that in 2024, losses from fraud in the crypto industry exceeded $9.9 billion.