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How Swedish criminal gangs allegedly launder money through Spotify

Sweden's criminal gangs are using fake Spotify streams to launder money, according to a report by the Svenska Dagbladet newspaper.

How Swedish criminal gangs allegedly launder money through Spotify
Spotify said fake streams were an industry-wide problem and they were working hard to combat it. Photo: Gorm Kallestad/NTB Scanpix/TT

Criminal networks have for several years been using money from drug deals, robberies, fraud and contract killings to pay for false Spotify streams of songs published by artists with ties to the gangs, an investigative report in Svenska Dagbladet (SvD) claimed.

They then get paid by the platform for the high number of streams, thereby laundering the money.

The newspaper said its information had been confirmed by four gang members from separate criminal networks in Stockholm, as well as an anonymous police investigator.

“I can say with 100 percent certainty that this goes on. I have been involved in it myself,” SvD quoted one anonymous gang member as saying.

He said his gang began using the music streaming giant Spotify for money laundering in 2019, around the time Swedish gangster rap became popular in the country and started winning music awards.

“We have paid people who have done this for us systematically,” he said.

Describing the process, he said the gangs would convert their dirty cash to bitcoin, then used the cryptocurrency to pay people who sold fake streams on Spotify, which is a Swedish company.

They “made sure we ended up at the top of the charts,” he said, adding that the fake streams also led to an uptick in real streams. Higher streams lead to higher payouts from Spotify.

The newspaper said that in Sweden, a million streams pays about 40,000 to 60,000 kronor ($3,600 to $5,400).

The anonymous investigative police officer told Svenska Dagbladet he contacted Spotify in 2021 to discuss the matter but the company never returned his call.

“Spotify has become a bank machine for the gangs. There’s a direct link to the gangs and the deadly violence,” he told the paper.

In 2022, Sweden registered 90 blasts and another 101 cases of attempted bombings or preparations for bombings, as well as 391 shootings, 62 of them fatal, according to police data.

Spotify told AFP in a statement that manipulated streams were “an industry-wide challenge and Spotify has been working hard to address this issue.”

“Less than one percent of all streams on Spotify have been determined to be artificial and those are promptly mitigated prior to any payouts,” it said.

The Swedish company said it was not aware of any contact made by law enforcement, nor had it found “any data or hard evidence that indicates that the platform is being used at scale in the fashion described”.

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CRIME

EXPLAINED: What we know about the attack on a Swedish anti-fascist meeting

Several masked men, described by anti-racism magazine Expo as "a group of Nazis" carried out the attack at an event organised by the Left Party and Green Party. Here's what we know so far.

EXPLAINED: What we know about the attack on a Swedish anti-fascist meeting

What happened?

Several masked men burst into a Stockholm theatre on Wednesday night and set off smoke bombs during an anti-fascism event, according to police and participants.

Around 50 people were taking part in the event at the Moment theatre in Gubbängen, a southern suburb of the Swedish capital, organised by the Left Party and the Green Party.

“Three people were taken by ambulance to hospital,” the police said on its website, shortly after the attack.

According to Swedish media, one person was physically assaulted and two had paint sprayed in their faces.

“The Nazis attacked visitors using physical violence, with pepper spray, and vandalised the venue before throwing in some kind of smoke grenade which filled the foyer with smoke,” Expo wrote on its website

The magazine’s head of education Klara Ljungberg was at the event in order to hold a lecture at the invitation of the two political parties.

What was the meeting about?

According to the Left Party’s press officer, the event was “a meeting about growing fascism”. 

Left Party leader Nooshi Dadgostar described the event to public broadcaster SVT as an “open event, for equality among individuals”.

As well as Ljungberg from Expo, panelists at the event included anti-fascist activist Mathias Wåg, who also writes for Swedish centre-left tabloid Aftonbladet.

“They were determined and went straight for me,” Wåg told Expo just after the attack. “I received a few blows but nothing that caused serious damage.”

“I was invited to be on a panel in order to discuss anti-fascism with representatives from the Left Party and the Green Party,” he told the magazine. “I didn’t know this was going to happen, but there’s obviously a risk when Expo and I are in the same place.”

What has the reaction been like?

All of Sweden’s parties across the political spectrum have denounced the attack, with Dadgostar describing it as a “threat to our democracy” when TT newswire interviewed her at the theatre a few hours after the attack occurred.

Prime Minister Ulf Kristersson, from the conservative Moderates, called the attack “abhorrent”.

The Moderates, Christian Democrats and Liberals are currently in government with the support of the far-right Sweden Democrats, while the Social Democrats, Left Party, Centre Party and Green Party are in opposition.

“It is appalling news that a meeting hosted by the Left Party has been stormed,” Kristersson told TT. “I have reached out to Nooshi Dadgostar and expressed my deepest support. This type of abhorrent action has no place in our free and open society.”

“Right-wing extremists want to scare us into silence,” Social Democrat leader Magdalena Andersson wrote on X. “They will never be allowed to succeed.”

“The attack by right-wing extremists at a political meeting is a direct attack on our democracy and freedom of speech,” Green Party co-leader Daniel Helldén wrote on X. “My thoughts are with those who were affected this evening.”

Sweden Democrat party leader Jimmie Åkesson wrote in an email to TT that “political violence is terrible, in all its forms, and does not belong in Sweden.”

“All democratic forces must stand in complete solidarity against all kinds of politically motivated violence,” he continued.

His party has previously admitted to being founded by people from “fascist movement” New Swedish Movement, skinheads, and people with “various types of neo-Nazi contact”.

“It is an attack not only on the Left Party, Green Party and the Expo Foundation, but also on our entire democratic society,” Centre Party leader Muharrem Demirok, who referred to the attackers as “Nazis”, wrote on social media. “Those affected have all my support.”

Christian Democrat leader Ebba Busch and Liberal leader Johan Pehrson both referred to the attackers as “anti-democratic forces”.

“It is never acceptable for a political meeting to be stormed by anti-democratic forces,” Busch wrote. “There is no place for this in our society.”

“Anti-democratic forces like this represent a serious threat to our democracy and must be met with society’s hardest iron fist,” Pehrson said.

What about the attackers? Has anyone been arrested?

Not yet. The police had not made any arrests at the time of writing on Thursday morning.

According to TT, police did not want to comment on who could be behind the attack.

It is currently being investigated as a violation of the Flammable and Explosive Goods Act, assault, causing danger to others and disturbing public order.

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