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Five individuals have been sentenced for their involvement in a $21.6 million crypto fraud that swindled 40,000 investors. The Austrian court handed down sentences on October 23, marking one of the largest fraud trials in the country’s history.
The criminals used schemes such as the EXW Wallet and EXW crypto token to dupe investors, promising high returns but ultimately collapsing in 2020. The court found that the stolen funds were extravagantly spent on private jet trips, luxury cars, and even a shark tank, as revealed by Austrian news outlet Heute.
International Case With No Extradition
The convicted fraudsters—two sentenced to five years, two to 30 months, and one to 18 months—used their ill-gotten gains to finance a life straight out of a “Hollywood film,” partying in exclusive clubs in Dubai and Bali. Among their lavish expenses were big sums carried from Dubai to Austria in plastic bags.
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The criminal network operated primarily out of Dubai, posing high challenges for Austrian prosecutors. Since there’s no extradition agreement between Austria and the United Arab Emirates, several defendants managed to evade capture. On the other hand, others voluntarily surrendered. One of the key figures, EXW Wallet co-founder Benjamin Herzog, pled guilty in 2022. However, despite this verdict, some convicted members have already indicated plans to appeal their sentences.
Austria’s Major Fraud Trial
The trial, held at the Klagenfurt Regional Court, spanned two months and involved over 300 hours of deliberations. It is also considered one of Austria’s largest fraud trials, revealing the complexity and global nature of the cryptocurrency scam. The sentencing judge, Claudia Bandion-Ortner, presided over a case that underscored how cryptocurrencies are increasingly being used as vehicles for fraud.
Beyond the EXW Wallet scam, authorities have uncovered additional layers to the group’s criminal activities. Some of the defendants are now under investigation for involvement in another fraud case, where $17.2 million was stolen from 17,000 victims in a cannabis-related scheme. These revelations point to a broader, well-organized criminal enterprise.
