Two men deny charges over 120.3 million króna transfers

Two men accused of exploiting a fault in Landsbankinn’s online banking system to transfer more than 120 million króna deny the charges, mbl.is reports. They are among 71 people charged in a major fraud and money-laundering case formally opened at Reykjavík District Court on Monday.

The two men are the only defendants charged with all three counts: breach of trust, alternatively fraud, and money laundering. Prosecutors say they exploited a fault caused by an October 2025 update at Reiknistofa bankanna, a banking data centre.

The fault temporarily meant withdrawals were not deducted from the account holders’ available balances. According to the indictment, the men made 218 transfers totalling 120.3 million króna between October 11 and 28, 2025. The alleged unlawful gain was 95.6 million króna.

Four other defendants are said to have played key roles in moving the money on to other people. They also deny the most serious charges.

Seven groups of defendants are to appear in courtroom 101. Several interpreters are also present. One defendant initially denied the charges but later admitted the negligence-related part after consulting a lawyer. The indictment indicates that he acknowledges receiving money but says he did not understand what it involved.