Reykjavík District Court ruled on Saturday that two men, both around 40, should remain in custody until Wednesday this week for allegedly smuggling 1.8 liters of liquid cocaine with an express delivery from the US.
A woman in her 30s was also arrested in relation to this case, but later released, Fréttabladid reports.
The substance was found during a house search in Reykjavík on Friday night. It is believed to originate in South America and have been sent to Iceland via the US.
The case is being investigated by Icelandic police and customs authorities in cooperation with American authorities.
According to Thórarinn Tyrfingsson, head physician at the Center for Addiction Medicine, liquid cocaine is simply cocaine that has been dissolved in water and can be used to produce powdered cocaine or consumed in its liquidized form.