In a landmark verdict, five individuals have been sentenced in Austria for their roles in a massive cryptocurrency fraud totaling $21.6 million, which affected approximately 40,000 investors. The defendants were found guilty of serious commercial fraud, money laundering, and operating pyramid schemes associated with the EXW Wallet and EXW token.
The trial, held at the Klagenfurt Regional Court, marks the largest case of its kind in Austrian history, lasting 60 days and featuring over 300 hours of hearings. Judge Claudia Bandion-Ortner announced the sentences after thorough deliberation.
Among the sentences, two individuals received five years in prison, two others were given 30-month sentences, and one was sentenced to 18 months. In addition, five other defendants were acquitted, while additional suspects remain unaccounted for.
Evidence presented during the trial revealed that the perpetrators led lavish lifestyles funded by stolen money, indulging in extravagant parties in Dubai, private jet travel, luxury automobiles, and even a shark tank in a villa in Bali. The prosecution disclosed that over $100,000 was funneled into payments for sex workers.
The scheme operated under a facade of profitability, with the defendants deceiving investors into believing in legitimate investment opportunities that ultimately never materialized. Funds stolen from investors were reportedly smuggled back to Austria in plastic bags.
Investigators discovered that the scale of the fraud was far greater than initially estimated, with potential losses ranging from €14 million to €120 million based on witness statements.
While the defense argued that the defendants aimed to establish genuine investment opportunities, they conceded that the operation veered out of control. Conversely, prosecutors contended that the fraudulent activities were planned from the outset.
As the case draws to a close, the convicted individuals face significant prison sentences along with substantial legal fees and restitution payments. Some have expressed intentions to appeal the verdicts. Meanwhile, investigations into additional fraudulent endeavors by the defendants, including a cannabis investment scheme, are still underway.
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