A $22 million crypto scam has defrauded 40,000 investors, leading to multiple convictions in Austria. The scheme involved promises of high returns through the EXW Wallet and crypto tokens.
A massive crypto scam has left around 40,000 investors defrauded of approximately $22 million. The scheme, which involved a fraudulent investment platform, has led to multiple convictions in Austria, revealing a web of deceit and luxury funded by the victims' money.
The fraudulent operation centered around investments in the EXW Wallet and EXW crypto tokens, which promised enticing daily returns of 0.1% to 0.32%. This attractive offer lured many unsuspecting investors into the trap.
Launched in 2019, the EXW Wallet began to falter in 2020, leading to a series of investigations. By September 2023, authorities had identified eight suspects, accusing them of money laundering, operating a pyramid scheme, and commercial fraud.
The Klagenfurt Regional Court has been at the center of what is being dubbed Austria’s largest fraud trial. The proceedings spanned over a year, involving:
As of October 23, five of the accused have been convicted. The sentences include:
Some of the convicted individuals are reportedly planning to appeal their sentences.
Prosecutor Caroline Czedik-Eysenberg highlighted the complexities of the case, noting that the scam involved operations across multiple countries, some of which lack extradition treaties, such as the UAE. The fraudsters employed various tactics to obscure their financial trails, including:
Czedik-Eysenberg emphasized that the operation was never intended to pursue legitimate projects, with initial promises merely designed to attract victims. Defense attorneys, however, argue that some defendants lost control as the scheme expanded beyond their management capabilities.
In addition to the crypto scam, separate charges are being pursued in a cannabis-related fraud case, where it is estimated that $17.2 million has been stolen from over 17,000 individuals. This highlights a broader pattern of fraudulent activities linked to the same group of individuals.
The fallout from this scam serves as a stark reminder of the risks associated with cryptocurrency investments, particularly in schemes that promise unusually high returns. As investigations continue, authorities are working to ensure that justice is served for the thousands of victims affected by this elaborate fraud.
