In Austria, five individuals have been sentenced for their roles in a massive cryptocurrency scam that defrauded approximately 40,000 investors out of $21.6 million. The defendants faced serious charges, including commercial fraud, money laundering, and operating pyramid schemes related to the EXW Wallet and EXW token.
According to a report by Heute on October 23, the trial, held at the Klagenfurt Regional Court, marked a historic moment as the largest of its kind in Austria. Spanning 60 days and featuring over 300 hours of hearings, the proceedings concluded with Judge Claudia Bandion-Ortner delivering the verdicts following extensive discussions.
The court sentenced two of the defendants to five years in prison, while another two received 30-month sentences. A fifth individual was handed an 18-month sentence. Additionally, five other suspects were acquitted, and several remain unaccounted for.
Investigations uncovered that the perpetrators lived lavishly, utilizing stolen funds for extravagant parties in Dubai, private jet travel, luxury automobiles, and even a shark tank installed in a villa in Bali. Reports indicated that more than $100,000 was expended on sex workers. The prosecution revealed that the fraudsters deceived investors with a facade of profitability, despite the absence of legitimate investment ventures.
The operation, primarily based in Dubai, involved transporting significant amounts of illicit funds back to Austria concealed in plastic bags. Prosecutors have indicated that the scale of the scam is likely far greater than initially estimated, with potential losses ranging between €14 million and €120 million based on testimonies from witnesses.
Throughout the trial, the defense argued that the defendants had intended to establish authentic investment opportunities but that the scheme spiraled out of control. Conversely, the prosecution asserted that the fraudulent activities were premeditated.
As the case wraps up, the convicted individuals not only face incarceration but also significant legal expenses and restitution obligations. Some have already expressed intentions to appeal the sentences, while investigations into further fraudulent schemes linked to the defendants, including a cannabis investment plot, continue.
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