- Crypto scams led to the sentencing of five individuals in Austria, defrauding $21.6 million from 40,000 investors.
- Convicted scammers lived extravagantly, using stolen funds for private jets, luxury parties, and a villa shark tank.
- Investigations continue into connected frauds, with several suspects still on the run and some appealing their sentences.
Five people have been put behind bars for a large-scale cryptocurrency scam, which defrauded investors out of $21.6 million. Through the EXW Wallet and EXW crypto token, the group conducted their fraudulent activities defrauding an estimated 40,000 victims. According to the report, the convicted criminals spent the stolen money on the lavish lifestyle and expensive items.
The judges of the Klagenfurt Regional Court in Austria imposed the sentences in one of the largest crypto scam trials in Austria’s history. Two of the convicted persons were handed five-year jail terms while two others were handed 30 months and one 18 months jail term respectively. Other five people were released from the charges and several other suspects are still on the run.
Extravagant Crypto Scam
The fraud started in late 2019 and had been using the EXW Wallet to promise investors high profit on a daily basis. Nevertheless, the scheme fell through within several months of its establishment, and investors lost a lot of money. According to court documents, the fraudulent scheme spent freely on parties, jet travel, and even a shark aquarium for a villa.
The authorities also had several obstacles as the operation was based in Dubai, some of the defendants escaped to. There was no extradition treaty between Austria and the United Arab Emirates, but some of the suspects turned themselves in. Among the scheme’s main personnel, Benjamin Herzog, entered a guilty plea in 2022.
Ongoing Fallout from Crypto Scam
Nonetheless, the aftermath of the scam in 2020 has not yet been over. Some of the convicted have said they will appeal against their respective sentences, while further investigations into other frauds connected to the operation are still ongoing. Prosecutors have established a connection with another fraud scheme that targeted real estate and cannabis-related projects, which claimed millions of dollars from its victims.
This case shows that the incidence of crypto scam is on the rise and that it is very simple to defraud potential investors. While the police are in the process of apprehending the perpetrators of the fraud, and as more and more victims come to light, the public again learns a valuable lesson about the risks of the crypto market.
