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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Norwegian authorities have indicted four men accused of orchestrating a crypto investment scam that defrauded thousands of investors worldwide and laundered the proceeds through complex financial channels, including the accounts of a local law firm.
In a Feb. 16 statement, Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) revealed that the alleged scheme amassed over 900 million Norwegian kroner ($80 million) from unsuspecting investors.
Joakim Ziesler Berge, state prosecutor at Økokrim, described the case as one of the largest fraud investigations in the country’s history.
“We believe this is a large and extensive fraud,” Berge stated. “There are a significant number of victims across multiple countries who have lost substantial sums, much of which ended up with the defendants.”
Deceptive Investment Pitch and Empty Promises
The alleged fraud operated between March 2015 and November 2018, with victims persuaded to invest in what they believed was a highly profitable venture engaged in gas, mining, and real estate projects.
Investors were promised shares and cryptocurrencies issued by the supposed company.
However, Økokrim’s investigation revealed that the scheme made no significant investments, with early investors paid returns using funds from new recruits—a structure reminiscent of a Ponzi scheme.
Presentations promoting the fraudulent investment packages were held at major events across various countries, further widening the reach of the operation.
Victims were encouraged to bring in friends and family, amplifying the scheme’s scale.
Økokrim alleges that over 700 million Norwegian kroner ($62 million) was laundered through a Norwegian law firm’s client accounts and several companies based in Asia.
“The use of client accounts and company structures in Norway and abroad has complicated efforts to trace the funds,” Økokrim stated.
According to Norway’s state broadcaster NRK, the defendants—Norwegian men in their 50s, 60s, and 70s—face charges for their respective roles in the operation.
Three are accused of collecting funds, while the fourth is charged with facilitating money laundering.
Defense Attorney Claims Client Denies Involvement in Norwegian Crypto Fraud Case
Christian Flemmen Johansen, representing one of the accused, said his client denies all allegations and involvement in the fraud.
Another defense attorney, Ole Petter Drevland, echoed similar sentiments for his client, asserting no criminal responsibility.
Legal representation details for the other two defendants were unavailable at the time of reporting.
The case is scheduled for trial at the Oslo District Court in September and is expected to span 60 days.
As reported, the crypto industry witnessed losses totaling $1.49 billion in 2024 due to hacks and fraud, marking a 17% decrease from 2023.
According to a report by blockchain security platform Immunefi, hacks were overwhelmingly the primary cause, accounting for $1.47 billion or 98.1% of the total losses across 192 incidents.
