A gang of convicted Austrian fraudsters funded their luxurious lives with money obtained from a giant cryptocurrency scam. Among the other luxuries they purchased were a shark tank, a villa, a luxury car, private jet trips, and nights at club parties, Austria’s Heute news agency reported on October 23. Reportedly 40,000 people fell victim Through this scheme, approximately $21.6 million (20 million euros) were collected from the scam.
Cryptocurrency scammers arrested
practical Fraudulent investment scheme It was based on investments in the EXW wallet, as well as in EXW cryptocurrency tokens and real estate projects. EXW promises an attractive daily return of 0.1% to 0.32%, which attracts the attention of most investors.
After its activation in 2019 EXW wallet It began to fail in 2020. After adding suspects, authorities charged eight people in September 2023 with money laundering, pyramid scheme operations, and commercial fraud.
By October 23, the Klagenfurt Regional Court had convicted five of the fraud defendants. Two of them were sentenced to five years in prison without parole, while two others received 30-month prison sentences. Another defendant was sentenced to 18 months in prison, while five others were acquitted. Of the defendants’ three previous convictions, three were counted toward their sentence, and some of those convicted are said to be planning to appeal.
Investigation challenges and additional allegations
As Huet called it, “Austria’s largest fraud trial” took more than a year: 60 days in court, 300 long hours of negotiations, and 3,000 case files. According to prosecutor Caroline Chiddick-Isenberg, the fraud was not simple because it involved operations in several countries without extradition treaties, such as the United Arab Emirates.
To further obscure financial paths, Scammers Use encrypted Telegram communications and seek help from companies that specialize in this field. The report revealed that some of them carried money in plastic bags to Austria.
Chiddick-Isenberg described the operation as never intended to pursue profitable projects, with initial promises intended only to attract victims. Defense lawyers say some defendants lost control because the scheme became too big for them to handle.
Separate charges are also being sought in a cannabis fraud, in which it is estimated that $17.2 million (€16 million) was stolen from more than 17,000 individuals.
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