A gang of convicted Austrian fraudsters financed their luxurious lives with money obtained as a result of a gigantic cryptocurrency fraud. Other luxuries they bought included a shark tank, a villa, a luxury car, private jet travel and clubbing nights, Austrian news site Heute reported on October 23. According to reports, 40,000 people were killed under this scheme and approximately USD 21.6 million (EUR 20 million) was collected as a result of the fraud.
Cryptocurrency fraudsters arrested
Action fraudulent investment scheme was based on investments in the EXW Wallet, as well as in EXW cryptocurrencies and real estate projects. EXW promises an attractive daily return of 0.1% to 0.32%, which attracts the attention of most investors.
After launch in 2019 EXW Wallet it began failing in 2020. After adding suspects, authorities in September 2023 charged eight people with money laundering, pyramid schemes and trade fraud.
By October 23, the District Court of Klagenfurt had sentenced five people accused of fraud. Two received five years in prison without parole, and two others received sentences of 30 months each. An additional defendant received 18 months and five were acquitted. Of the defendants’ three prior convictions, three were included in their sentences, and some of the defendants reportedly plan to appeal.
Investigative challenges and additional charges
As Heute put it, “Austria’s largest fraud trial” lasted more than a year: 60 days in court, 300 long hours of negotiations and 3,000 case files. According to prosecutor Caroline Czedik-Eysenberg, the fraud was not plain because it involved operations in several countries without extradition treaties, such as the United Arab Emirates.
To further unknown the financial trails, scammers used encrypted Telegram communication and even sought facilitate from companies that are experts in this field. The report found that some transported funds in plastic bags to Austria.
Czedik-Eysenberg described the operation as unintentional, which was never intended to implement profitable projects, and the initial promises were only intended to attract victims. Defense attorneys argue that some defendants simply lost control because the program became too much for them to handle.
Separate charges are also expected to be laid in connection with a cannabis scam in which an estimated $17.2 million (€16 million) was stolen from more than 17,000 people.
Featured image from Pexels, chart from TradingView
