Swedish Fraudster Jailed 15 Years for $16 Million Crypto Con

In short

  • Roger Nils-Jonas Karlsson made $16 million in a crypto con.
  • The scheme inspired would-be traders to make use of crypto to spend money on his fraudulent program.
  • He admitted to the fees in March and was jailed yesterday.

A Swedish man has been jailed for 15 years for conning folks out of $16 million in a crypto rip-off, the U.S. Division of Justice said Thursday. 

Roger Nils-Jonas Karlsson, 47, pleaded guilty earlier this 12 months to securities fraud, wire fraud, and cash laundering expenses. Karlsson purchased fancy houses, a racehorse and resort in Thailand after would-be traders plugged money into his scheme, “Japanese Steel Securities.” 

The rip-off lured folks to purchase shares in a fraudulent on-line funding program utilizing cryptocurrencies like Bitcoin, the DoJ mentioned. Karlsson promised “astronomical returns” and requested for funds to be despatched by way of the U.S.’s greatest crypto change, Coinbase, in accordance to reports, which was actually a approach of laundering the money.  

Karlsson was busted in 2019 after 3,500 folks fell for the con. He admitted to the fees on March 4 of this 12 months and was extradited to the U.S. from Thailand.  

“We have been glad to supply our experience in tracing digital forex on this investigation, diminishing the idea of anonymity related to these transactions,” Kelly R. Jackson, IRS-CI particular agent in cost, mentioned on the time. 

Karlsson’s scheme preyed on “financially insecure traders” and brought on “extreme monetary hardship for a lot of of them,” the DoJ mentioned.

He was ordered yesterday to forfeit a Thai resort and varied different properties and accounts as a part of his sentence. The courts are anticipated to launch a restitution order in 90 days, the DoJ added.

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