Originally published on: October 24, 2024
A recent report revealed the shocking details of a crypto fraud case where five individuals used stolen funds to finance a lavish lifestyle. These scammers managed to swindle $21.6 million from around 40,000 investors through various investment schemes, including the EXW Wallet and the EXW crypto token, as reported by Austrian news outlet Heute.
The culprits were sentenced to prison terms, with two receiving five years, two getting 30 months, and one handed 18 months behind bars. However, some individuals managed to evade authorities and are currently on the run.
The fraud trial, which took place at the Klagenfurt Regional Court, marked the largest in Austrian history, painting a grim picture of greed and excess. Judge Claudia Bandion-Ortner delivered the sentences after months of trial and intense negotiations, highlighting the extravagant lifestyle led by the scammers.
Living like characters from a Hollywood movie, the fraudsters spared no expense, indulging in private jet rides, extravagant parties in Dubai’s elite clubs, and purchasing a shark tank for a villa in Bali. The stolen funds were also used to hire sex workers, with more than $100,000 reportedly spent on these illicit activities.
Despite their high-profile lifestyle, the criminals managed to transport some of the stolen cash to Austria in plastic bags, evading extradition due to the lack of an agreement between Austria and the UAE. The operation was orchestrated from Dubai, where the scammers established their base of operations.
The EXW Wallet, which promised substantial returns on investment, collapsed in 2020 after launching in late 2019. In addition to their crypto fraud, some defendants are also facing charges related to a cannabis-related scam where $17.2 million was stolen from unsuspecting victims.
As the saga continues, with appeals planned by some of those convicted, the case sheds light on the dark side of the crypto world. Stay informed about the latest developments in crypto laws and regulations by subscribing to our Law Decoded newsletter. Arm yourself with knowledge to make informed decisions for your crypto ventures.