🌎 Norway Cracks Down on $87M Crypto Fraud Operation

Norway Cracks Down on Large-Scale Crypto Fraud Operation

Norwegian authorities have indicted four individuals for their involvement in an extensive crypto fraud and money laundering operation that deceived thousands of victims across multiple countries. The scam, which funneled over 900 million kroner ($86–87 million) into the scheme, highlights the growing concerns of investment fraud and the misuse of financial professionals to disguise criminal proceeds.

The Scheme Unraveled

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.

However, 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.

Professional Facilitators Under Scrutiny

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

“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.”

Global Concerns of Investment Fraud

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.

Tips for investors to avoid similar scams: