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$87M crypto scam uncovered in Norway, four individuals indicted

Jayson Derrick
Edited by
News
$87M crypto scam uncovered in Norway, four individuals indicted

Norwegian authorities have indicted four individuals for their involvement in an extensive fraud and money laundering operation that deceived thousands of victims across multiple countries. 

Økokrim, Norway’s economic crime unit, revealed that over 900 million kroner ($86–87 million) was funneled into the scheme, with more than 700 million kroner laundered through a Norwegian law firm and transferred to accounts in Asia.

According to the indictment, victims were drawn into the scam through a multi-level marketing structure. Recruited by existing members, participants were persuaded to buy “product packages” that included the company’s proprietary cryptocurrency and shares.

They were promised a stake in what was presented as a lucrative business investing in gas fields, mining, and real estate.

“We believe this is a large and extensive fraud,” said State Prosecutor Joakim Ziesler Berge. “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.”

Investigators assert that no substantial investments were made and that the business had no revenue apart from new members’ deposits—a hallmark of a Ponzi scheme.

The funds were allegedly laundered through intricate layers of accounts before being distributed as “returns” to top networkers and early investors.

Authorities also highlighted the role of professional facilitators, such as lawyers and accountants, in obscuring the money trail.

The situation demonstrates that organized crime, particularly fraud and money laundering across national borders, will be thoroughly investigated and prosecuted, regardless of whether the victims are situated in countries outside of Norway, according to Berge.

Investment fraud and the misuse of financial professionals to disguise criminal proceeds are growing concerns globally. Europol has warned that financial crimes like these are the “engine of crime” and remain a significant challenge for international law enforcement.