Five Sentenced in Austria’s Largest Crypto Scam of $21.6M

Five individuals in Austria have been sentenced for their involvement in a staggering $21.6 million cryptocurrency fraud scheme that defrauded around 40,000 investors. The defendants were charged with serious commercial fraud, money laundering, and running pyramid schemes linked to EXW Wallet and EXW token.

As reported by Heute on October 23, the trial, which took place at the Klagenfurt Regional Court, is the largest in Austrian history, spanning 60 days and involving over 300 hours of hearings. Judge Claudia Bandion-Ortner delivered the verdicts after extensive deliberations. 

Two defendants received five-year prison sentences, while two others were sentenced to 30 months, and one was handed 18 months. Five additional individuals were acquitted, and others remain at large.

The investigation revealed that the fraudsters lived extravagant lifestyles, spending stolen funds on lavish parties in Dubai, private jet travels, luxury cars, and even a shark tank in a villa in Bali. 

Over $100,000 was reportedly spent on sex workers. The prosecution stated that these criminals created an illusion of profitability to lure investors, with no real investment projects ever materializing.

This operation, based primarily in Dubai, saw large sums of stolen money transported back to Austria in plastic bags. Prosecutors indicated that the scale of the fraud was much larger than initially thought, with potential damages estimated between €14 million and €120 million based on witness testimonies.

Throughout the trial, the defense claimed the defendants intended to create genuine investment opportunities, but the scheme spiraled out of control. In contrast, the prosecution maintained that the fraudulent nature of the operation was premeditated. 

As the case concludes, the defendants face not only prison time but also hefty legal costs and compensation payments. Some have already indicated plans to appeal the verdicts, while the investigation into additional fraudulent activities involving the defendants, such as a cannabis investment scheme, is ongoing.