As a seasoned crypto investor with over a decade of experience under my belt, this news serves as yet another sobering reminder of the darker side of our beloved industry. It is disheartening to see individuals misusing the trust and resources placed in their hands for personal gain, living extravagant lifestyles funded by the hard-earned savings of unsuspecting investors.
A group of five individuals received prison sentences due to their involvement in a large-scale, approximately $21.6 million, cryptocurrency scam. It is alleged that they splurged the pilfered funds on various extravagances such as an aquarium featuring sharks, private jet trips, adult entertainment services, and a high-end automobile.
Approximately 40,000 investors collectively handed over around 21.6 million dollars (equivalent to 20 million euros) to a group of criminals across various investment plans, including the EXW Wallet and the EXW digital currency token, as reported by Austrian news source Heute on October 23rd.
Among the defendants, two were given a sentence of 5 years, another pair were sentenced to 30 months, and a third received 18 months in prison. Five of them were found not guilty, while some others are still evading the law enforcement.
The fraud trial at the Klagenfurt Regional Court was the largest in Austrian history, Heute noted.
Today, Judge Claudia Bandion-Ortner declared her ruling on Oct. 23, following a two-month trial and approximately 300 hours of negotiations. The fraudsters, she noted, had been leading extravagant lives reminiscent of a Hollywood movie, frequenting some of Dubai’s most exclusive clubs for lavish parties and jetting between cities in private aircraft.
They even bought a shark tank in a villa, which news and review site BehindMLM reported to be in Bali.
More than $100,000 was spent on sex workers, too, BehindMLM said in the July 12 article.
There was “no shortage of money,” Heute said.
As a researcher uncovering the intricacies of this fraudulent activity, I’ve discovered that although its core was situated in Dubai, a portion of the ill-gotten gains were covertly transported to Austria – a country with a significant number of associates involved in this scheme. This was a notable observation made by Heute.
In September 2023, Austrian authorities formally accused eight individuals linked to the EXW fraud, with additional suspects facing charges over the subsequent months.
In the absence of an extradition treaty with the United Arab Emirates, prosecutors found it challenging, as pointed out by Heute. Some suspects chose to surrender themselves, while others escaped.
One of the founders of EXW Wallet, Benjamin Herzog, pled guilty last December, BehindMLM reported.
It appears that some of the defendants who were found guilty during the October 23 trial are contemplating an appeal of their convictions.
In the last quarter of 2019, EXW Wallet was introduced, boasting potential returns of 0.1% to 0.32% per day for its EXW tokens. However, this financial scam unraveled only a few months into 2020.
As a crypto investor, I’ve encountered situations where unscrupulous individuals peddled not only dubious digital assets but also real estate ventures. Remarkably, some of the suspects are currently under investigation for a cannabis-related fraud scheme. It is reported that approximately $17.2 million (16 million euros) was swindled from around 17,000 unsuspecting victims in this case.
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2024-10-24 09:05