Five individuals in Austria have been sentenced for their roles in a major cryptocurrency scam that defrauded approximately 40,000 investors out of a staggering $21.6 million. The defendants faced serious charges, including commercial fraud, money laundering, and operating pyramid schemes associated with the EXW Wallet and EXW token.
The trial, which took place at the Klagenfurt Regional Court, is noted as the largest in Austria’s judicial history, spanning 60 days and encompassing over 300 hours of hearings. Judge Claudia Bandion-Ortner announced the sentences following extensive discussions.
Among the sentences, two defendants received five-year prison terms, while another two were sentenced to 30 months, and one was given an 18-month term. Five additional individuals were acquitted, while several others remain fugitives.
Evidence presented during the trial revealed that the defendants led extravagant lifestyles, utilizing stolen funds for opulent parties in Dubai, private jet trips, luxury vehicles, and even a shark tank in a Bali villa. Reports indicate that over $100,000 was spent on sex workers.
Prosecutors asserted that the fraudsters fabricated a façade of profitability to entice investors, with no legitimate investment opportunities ever materializing. The operation, primarily based in Dubai, involved transferring large amounts of stolen cash back to Austria in plastic bags. Prosecutors estimated that the total damages could range from €14 million to €120 million, far exceeding initial projections, based on witness testimonies.
Throughout the proceedings, the defense argued that the defendants had genuine intentions to develop investment opportunities but that the situation spiraled beyond their control. Conversely, the prosecution contended that the fraudulent aspects of the operation were premeditated.
As the case wraps up, the convicted individuals face not only imprisonment but also substantial legal fees and compensation obligations. Some have expressed intentions to appeal the verdicts, while investigations into further fraudulent schemes, including a cannabis investment operation linked to the defendants, continue.
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