A group of convicted Austrian fraudsters funded their extravagant lifestyle with money obtained from a massive crypto scam. Their purchases included a shark tank, a villa, a luxury car, private jet travel, and nights at club parties, as reported by Heute, an Austrian news outlet, on October 23. Approximately 40,000 individuals fell victim to the scheme, accumulating around $21.6 million (20 million euros) from the fraud.
Crypto Scammers Caught
The fraudulent investment scheme revolved around investments in the EXW Wallet, as well as in EXW crypto tokens and real estate projects. EXW claimed an appealing daily return of 0.1% to 0.32%, which lured many investors.
Since its launch in 2019, the EXW Wallet began to collapse in 2020. After identifying additional suspects, authorities charged eight individuals in September 2023 with money laundering, operating a pyramid scheme, and commercial fraud.
As of October 23, the Klagenfurt Regional Court had sentenced five of the accused. Two received five-year prison terms without parole, while two others were given 30-month sentences. One additional defendant received an 18-month sentence, and five were acquitted. The defendants had three prior convictions accounted for in their sentences, and some convictions are reportedly considering appeals.
Investigation Hurdles and Further Allegations
To conceal their financial trails, the fraudsters used encrypted Telegram messages and even sought help from expert companies. Some reportedly transported funds in plastic bags back to Austria, the report revealed.
Czedik-Eysenberg characterized the operation as never intending to engage in legitimate projects, with initial promises merely designed to attract victims. Defense lawyers contend that some defendants lost control as the scheme expanded beyond their capacity to manage.
Separate allegations are also being pursued in relation to a cannabis-related fraud, where it’s estimated that $17.2 million (16 million euros) has been defrauded from over 17,000 victims.
Featured image from Pexels, chart from TradingView
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