A gang of convicted Austrian fraudsters financed their lives of luxury with money obtained from a massive crypto scam. Among other luxury items they bought were a shark tank, a villa, a luxury car, private jet trips and nights at club parties, Heute, an Austrian news outlet, reported on October 23. It is reported that 40,000 people have been victims through the scheme, with approximately $21.6 million (20 million euros) from the fraud.
Crypto scammers arrested
The operation of the fraudulent investment scheme was based on investments in the EXW Wallet, but also in EXW crypto 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, the EXW wallet started to fail in 2020. After adding suspects, authorities charged eight people in September 2023 with money laundering, pyramid schemes and commercial fraud.
On October 23, the Klagenfurt Regional Court had convicted five of the fraud suspects. Two received sentences of five years without parole, while two others received sentences of 30 months. An additional defendant received 18 months, while five were acquitted. Of the three previous convictions involving the defendants, three were counted towards the sentence, and some of those convicted reportedly plan to appeal.
Investigative Challenges and Additional Allegations
As Heute called it, “Austria’s largest fraud trial” lasted longer than a year: 60 days in court, 300 long hours of negotiations and 3,000 files. According to prosecutor Caroline Czedik-Eysenberg, the scam was not simple as it involved operations in several countries without extradition treaties, such as the UAE.
To further cover up the financial traces, the fraudsters used encrypted Telegram communications and even enlisted the help of companies that are experts in this field. Some carried money in plastic bags to Austria, the report found.
Czedik-Eysenberg described the operation as never intended to pursue profitable projects, with initial promises designed only to attract victims. Defense attorneys argue that some defendants only lost control because the scheme became too big for them to handle.
A separate indictment is also being filed for cannabis-related fraud, in which an estimated $17.2 million (16 million euros) was stolen from more than 17,000 people.
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