In a landmark decision, five individuals in Austria have been sentenced for their roles in an extensive cryptocurrency fraud that defrauded approximately 40,000 investors, amounting to $21.6 million. The accused faced serious charges, including commercial fraud, money laundering, and orchestrating pyramid schemes associated with the EXW Wallet and EXW token.
The trial, noted for its scale and complexity, took place over 60 days at the Klagenfurt Regional Court and involved more than 300 hours of testimony. Judge Claudia Bandion-Ortner presided over the proceedings, delivering the verdicts following comprehensive deliberations. Two of the defendants received prison sentences of five years, while two others were sentenced to 30 months each, and one individual received an 18-month sentence. Five additional suspects were acquitted, with others still evading authorities.
Evidence presented during the trial indicated that the fraudsters indulged in extravagant lifestyles, funding lavish parties in Dubai, traveling on private jets, and purchasing luxury vehicles. Reports suggest over $100,000 was spent on escort services, highlighting the extent of their misuse of the stolen funds. Prosecutors argued that the perpetrators crafted a facade of profitability to attract investments, with no legitimate projects ever coming to fruition.
The operation was primarily based in Dubai, where substantial amounts of the stolen money were smuggled back to Austria in plastic bags. Investigators revealed that the extent of the fraud was likely far greater than originally estimated, with potential losses ranging from €14 million to €120 million, according to witness testimonies.
During the trial, the defense contended that the defendants aimed to establish legitimate investment opportunities, but that the scheme spiraled beyond their control. Conversely, the prosecution asserted that the fraudulent intent was intentional and premeditated from the outset.
As the case draws to a close, the convicted individuals face not only prison sentences but also significant legal fees and restitution payments. Some have already expressed intentions to appeal the decisions, while investigations into further fraudulent schemes involving the defendants, including a cannabis investment venture, continue.
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