A group of convicted fraudsters from Austria financed their lavish lifestyle with the proceeds of a massive crypto scam. Among other luxuries they bought were a shark tank, a villa, a luxury car, private jet travel, and nights at club events, Heute, an Austrian newspaper, reported on October 23. About 40,000 people were reportedly victimized by the scheme. approximately $21.6 million (20 million euros) was collected as a result of the fraud.
Crypto Scammers Busted
The operation of the fraudulent investment scheme was based on investments in the EXW Wallet, as well as EXW crypto tokens and real estate projects. EXW promises an attractive return of 0.1% to 0.32% daily, which attracts the attention of many investors.
After its operation in 2019, EXW Wallet started to fail in 2020. After adding suspects, authorities charged eight people in September 2023 with money laundering, pyramid scheme operations, and commercial fraud.
On October 23, the District Court of Klagenfurt sentenced five of the suspects in this fraud practice. Two received sentences of five years in prison without parole, and two others received sentences of 30 months. One defendant received 18 months, and five were released. Of the three previously convicted, three have been sentenced, while the others who were convicted are reportedly planning to appeal the case.
Investigational Challenges and Additional Allegations
As Heute called it, “Austria’s biggest fraud case” took more than a year: 60 days in court, 300 hours of interviews, and 3,000 case files. According to Prosecutor Caroline Czedik-Eysenberg, this scam was not easy as it involved working in several countries without restitution agreements, such as the UAE.
To further obfuscate financial means, fraudsters use encrypted Telegram communications and even enlist the help of companies that specialize in this field. Some carried the money in plastic bags to Austria, the report said.
Czedik-Eysenberg described the project as not intending to pursue profitable projects, with initial promises only intended to attract victims. Defense attorneys argued that some defendants simply lost control as the program was too big for them to handle.
Separate charges are also being sought for marijuana-related fraud, where an estimated $17.2 million (€16 million) was stolen from more than 17,000 people.
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