Giant Money Laundering and Fraud Ring Uncovered
Four individuals have been indicted by Norwegian authorities for their involvement in a huge money laundering and fraud scheme that defrauded thousands of individuals across various countries. The scale of the amount involved is more than 900 million kroner ($86–87 million), with more than 700 million kroner laundered by a Norwegian law firm and transferred to Asian accounts.
Multi-Level Marketing Fraud Tactics
Recruits were assembled, the indictment states, by a multi-level marketing (MLM) structure. The new recruits purchased “packages of products” comprising the company’s own cryptocurrency and stock. Exaggerated returns on investment in gas fields, mining, and real estate encouraged participants to invest large sums.
Authorities Call It a Ponzi Scheme
“We believe it is a large and extensive fraud,” State Prosecutor Joakim Ziesler Berge said. “We are dealing with a significant number of victims in multiple countries who have lost money, and enormous sums that have fallen into the defendants’ hands.”
Investigators claim that no investments were actually made and that the business operated solely on deposits from new members—coinciding with the nature of a Ponzi scheme. Funds were transferred through sophisticated layers of accounts before being returned as “returns” to initial investors and high-end networkers.
Role of Professional Facilitators
The officials also highlighted the involvement of professional facilitators like lawyers and accountants, who were at the core of the money trail being hidden. They helped the scheme operate under the cover of legitimacy while directing illicit money across international borders.
International Concern Over Financial Crime
This case spotlights the rising threat of money laundering and financial crime in the cryptocurrency industry. Europol has warned that such crimes are the “engine of crime” and are a global law enforcement agency headache.
Berge pointed out that cross-border financial crime and fraud will not go unpunished. “Whether or not the victims are foreign, such organized crime will be thoroughly investigated and prosecuted,” he said.
With regulatory authorities around the globe tightening the reins on digital currencies and financial professionals, such cases point to the necessity for enhanced enforcement and increased transparency in the cryptocurrency sector.
