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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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A major trial in Austria has uncovered the depths of a massive crypto scam in which a group of fraudsters lived in extraordinary luxury at the expense of tens of thousands of victims.
The trial lasted over 60 days and included 300 hours of hearings at the regional court in Klagenfurt. It is described as one of the largest in Austrian legal history.
This cryptocurrency platform promised investors high returns through real estate projects, trading, and its own EXW token. However, investors didn’t know that their money was not being invested as promised but used by the defendants to finance their luxurious lives.
Austria Crypto Fraudsters: Deceptive Operation and Lavish Lifestyle
According to a local source, the scope of the fraud was staggering, with damages now totaling an estimated €20 million ($21.6 million).
Prosecutors allege that more than 40,000 people were duped into participating in the scheme, believing they were investing in legitimate projects.
Instead, the people behind EXW were siphoning off the funds, using them to finance private jet travel, exclusive parties, luxury cars, and even installing a shark tank in a Bali villa.
The fraudsters spared no expense in living out a lifestyle that mirrored scenes from Hollywood movies. Witness testimony painted a vivid picture of the luxurious lives the accused enjoyed.
They frequented some of the most prestigious clubs in Dubai, spent hundreds of thousands of dollars on sex workers, and transported their ill-gotten gains across borders in plastic bags.
Instead, the money, which should have been invested in cryptocurrency ventures, real estate, and other projects, was used to fund their excessive spending.
Some of the accused relocated the company’s headquarters to Dubai, complicating the investigation due to the lack of an extradition agreement between Austria and the UAE. This allowed several members of the group to evade justice for a time.
A Complex Web of Lies and Manipulation
The trial began in September 2023 and brought together multiple defendants, including individuals from Austria, Italy, Croatia, and other countries. They faced a range of charges, including serious fraud, money laundering, and running a pyramid scheme.
The defendants had a well-orchestrated strategy for misleading investors. They communicated primarily via encrypted messaging platforms.
Funds were laundered through cryptocurrency platforms, and the trail was carefully erased to make detection nearly impossible. This allowed the scheme to operate under the radar longer than most similar frauds.
After more than a year of courtroom proceedings, the jury court has finally delivered its verdict. Two defendants were each sentenced to five years in prison, while two others received 30-month sentences, with part of their sentences suspended.
A fifth defendant was handed an 18-month suspended sentence. Additionally, several of those convicted will be required to pay damages and cover the legal costs associated with the trial.
However, five defendants were acquitted, and at least one key figure failed to appear in court. Despite the verdicts, some convicted parties have already signaled their intention to appeal the rulings.
During the trial, one of the most contentious points was whether the fraud had been planned from the outset or spiraled out of control as the defendants struggled to manage the growing pool of investors.
Prosecutor Caroline Czedik-Eysenberg argued that the fraud was deliberate from the beginning.
“There were never any profitable projects, and that was never planned. They were only there to attract customers.”
Notably, a similar major fraud trial in France has begun. Over 20 defendants are accused of scamming 1,300 victims through fake cryptocurrency and diamond investment schemes, resulting in losses of approximately €28 million ($30 million).
