AgroupofscammersconvictedinanAustriancourtforoperatingafraudulentcryptoschemespenttheirill-gottengainsfuelingtheirlifestyles,includingbuyingasharktank,avilla,privatejetrides,aluxurycar,partiesinclubsandmore.
AccordingtoanOct.23reportfromAustriannewsoutletHeute,thecryptofraudsnaredabout40,000peopleandnettedthescammersabout$21.6million(20millioneuros).
VictimswerepromisedtheirfundswouldbeusedtogeneratehighreturnsthroughinvestmentsinEXWWallet,theEXWcryptotoken,andreal-estateprojects.
EXWWalletlaunchedinlate2019,promisingholdersofEXWtokensa0.1%to0.32%dailyreturnontheirinvestment.However,thewholeschemecollapsedin2020onlyafewmonthslater.
InSeptember2023,AustrianprosecutorsinitiallyindictedeightofthepeopleinvolvedinEXWforseriouscommercialfraud,moneylaundering,criminalassociationandoperatingapyramidscheme;morepeoplewerechargedinthefollowingmonths.
OnOct.23,aKlagenfurtRegionalCourtconvictedfiveofthepeopleinvolvedinthescheme.JudgeClaudiaBandion-Ortnersentencedtwoofthedefendantstofiveyearsbehindbarswithoutparole,andtwoweresentencedto30months.
Onedefendantreceived18monthsofprisontimefortheirroleinthescam.Anotherfivewereacquitted.Theeleventhdefendantwasabsentfromcourt.Somearereportedlyplanningtoappealtheirsentences.Previousconvictionsofthreedefendantsarebeingcountedtowardstheirsentences.ThegroupwasreportedlymadeupofnineAustriancitizens,oneItalianandoneCroatian.
InvestigationresultedinAustria’slargestfraudtrial
Heutebilledthetrialas“Austria’slargestfraudtrial.”Ittookjustoverayear,with60daysincourt,300hoursofnegotiations,and3,000filecomponents.
ProsecutorCarolineCzedik-Eysenbergsaidtheinvestigationwasmadesignificantlymorecomplicatedbecausethescammers’headquarterswasabroad,incountriesliketheUAEthatdon’thaveextraditionagreementswithAustria.
Thefraudstersalsousedfrontcompanies,communicatedviaTelegram,whichdoesn’tshareusers’datawithauthorities,andhadaccountsspreadacrossmultiplejunctionsworldwide.
Moneywasalsoexchangedoncryptoplatforms,andsomeofthestolencashwastransportedtoAustriainplasticbags.
Someoftheaccusedfledabroadbeforetheycouldbecaught.Othersturnedthemselvesinvoluntarily.
Prosecutorsarguedscammersfraudwasplannedfromthestart
Czedik-Eysenbergsaidthefraudwasplannedfromthebeginning,andthedefendantsneverintendedtofollowthroughontheirpromisestoinvestors.
“Therewereneveranyprofitableprojects,andthatwasneverplanned.Theywereonlytheretoattractcustomers,”shesaid.
Anattorneyactingforoneofthedefendants,PhilippTschernitz,arguedthathisclientneverintendedtodefraudanyone;theschemebecametoobigforhimtohandle.
Tschernitzsaidhisclient“investedalotofworkandplannedtomakeprofitswithvariousassets.”
Someoftheaccusedinthiscasearealsobeinginvestigatedforacannabis-relatedfraudcasewhereit’salleged$17.2million(16millioneuros)wasstolenfromover17,000victims.
cryptopolitan.com