In Austria’s largest-ever fraud trial, a group of scammers has been found guilty of defrauding 40,000 investors out of $21.6 million (20 million euros) in a crypto investment scheme. The group spent the stolen funds on a lavish lifestyle, indulging in luxury cars, a villa complete with a shark tank, private jets, and extravagant parties.

High-Return Promises and a Sudden Collapse

The group attracted investors by promoting the EXW Wallet and EXW crypto token, launched in late 2019, with promises of daily returns between 0.1% and 0.32%. They claimed funds would also be invested in real estate, but the scheme collapsed only a few months later in 2020, leaving investors empty-handed.

The investigation was complicated by the scammers’ use of front companies and their operation across multiple countries, including those without extradition treaties with Austria. Prosecutors noted that funds were moved through crypto platforms and even transported to Austria in plastic bags. Scammers communicated via Telegram, complicating data access for authorities, and operated with offshore accounts, evading local scrutiny.

The Court’s Verdict and Sentences

On October 23, the Klagenfurt Regional Court handed down convictions to five of the defendants involved. Judge Claudia Bandion-Ortner sentenced two to five years in prison, while two others received 30 months. One defendant received an 18-month sentence, while five were acquitted, and one defendant was absent from the proceedings. Some of the convicted individuals have announced plans to appeal.

Prosecutors have called this trial Austria’s largest fraud case, involving over a year of investigation, 60 court days, 300 hours of negotiations, and 3,000 case files. The investigation also connected some of the accused to a separate cannabis-related scam involving $17.2 million taken from an additional 17,000 victims.