Norwegian Authorities Charge Four in $80 Million Cryptocurrency Fraud
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Norwegian authorities have charged four men with orchestrating a cryptocurrency fraud scheme that defrauded thousands of investors worldwide of over 900 million Norwegian kroner (approximately $80 million).
Money Laundering Through Legal Channels
The National Authority for Investigation and Prosecution of Economic and Environmental Crime, known as Økokrim, announced the indictments on February 16, 2025.
The suspect allegedly lured victims into investing in non-existent “product packages” comprising cryptocurrencies and shares, promising substantial returns from ventures in gas, mining, and real estate sectors.
Norway charges 4 men in $87M crypto fraud
Norway has charged four men with running an $87 million crypto Ponzi scheme from 2015 to 2018, laundering $62.7 million through a Norwegian firm and Asian accounts. Victims invested in fraudulent platforms like Crypto888 Club and Nano…
— CoinNess Global (@CoinnessGL) February 18, 2025
However, Økokrim asserts that these investments were fictitious, with no significant assets or earnings backing the scheme. Instead, the operation relied on recruiting new investors to pay returns to earlier ones, a hallmark of a Ponzi scheme.
A significant aspect of this cryptocurrency fraud involved laundering approximately 700 million Norwegian kroner (around $62 million) through the accounts of a local law firm and various companies in Asia.
This complex financial maneuvering reportedly obscured the trail of illicit funds, complicating efforts to trace the money’s flow.
Økokrim highlighted that the use of client accounts and intricate company structures, both domestically and internationally, posed substantial challenges in uncovering the financial pathways of the defrauded funds.
Context of Cryptocurrency Fraud in Norway
The four defendants, Norwegian men in their 50s and 70s, are scheduled to face trial in Oslo District Court in September 2025. Proceedings are expected to last 60 days.
Three of the individuals are charged with facilitating the collection of funds, while the fourth faces charges related to money laundering.
Defense attorneys for the accused have stated that their clients deny criminal wrongdoing. Christian Flemmen Johansen of Flemmen & Co Law Firm, representing one of the defendants, emphasized that his client refutes the allegations and his involvement in the scheme.
Similarly, lawyer Ole Petter Drevland, defending another accused individual, asserted that his client denies any criminal responsibility in the case.
A recent study by the Becker-Friedman Institute revealed that tax evasion related to cryptocurrencies is pervasive in the country, with an estimated 88% of cryptocurrency holders not reporting their assets to tax authorities.
In response to the increasing prevalence of illicit crypto transactions, KPMG Norway and Chainalysis have formalized a partnership to strengthen defenses against cryptocurrency fraud.
Furthermore, Norway’s sovereign wealth fund’s ethics watchdog has announced plans to scrutinize cryptocurrency companies in 2025 for potential ethical breaches, particularly focusing on money laundering risks.
This initiative indicates a broader institutional effort to ensure that investments in the cryptocurrency sector adhere to ethical and legal standards.
Authorities are increasingly cracking down on cryptocurrency fraud, with cases like that of Canadian hacker Andean Medjedovic underscoring the risks in the DeFi space. Medjedovic allegedly stole $65 million from KyberSwap and Indexed Finance by exploiting vulnerabilities in their smart contracts.
