Foolish Scammers Blew Stolen Funds on Lavish Lifetsyle

Five individuals have been sentenced to prison for their involvement in a $21.6 million cryptocurrency fraud scheme, during which they reportedly used the stolen funds for extravagant expenses, including a shark tank, private jet rides, sex workers, and luxury cars.

According to the Austrian news outlet Heute, the group defrauded approximately 40,000 investors through various investment schemes, such as the EXW Wallet and the EXW crypto token.

Two defendants received five-year sentences, two others were sentenced to 30 months, and one was given 18 months.

While five defendants were acquitted, some remain at large.

This fraud trial, held at the Klagenfurt Regional Court, is noted as the largest in Austrian history, with sentences issued by Judge Claudia Bandion-Ortner on 23 October following two months of proceedings and 300 hours of deliberations.

Fraudsters Had an Extravagant Lifestyle

According to Heute, the fraudsters indulged in a lifestyle reminiscent of a "Hollywood film," frequenting some of Dubai's most luxurious clubs and jetting between cities in private aircraft.

They reportedly purchased a shark tank for a villa, with reports from BehindMLM indicating it was located in Bali.

Additionally, more than $100,000 was allegedly spent on sex workers, as detailed in a 12 July article by BehindMLM.

Heute noted that there was no shortage of money.

Dubai-Based Operation

The fraudulent operation, which was primarily based in Dubai, involved transporting stolen funds back to Austria in plastic bags.

In September 2023, Austrian prosecutors indicted eight individuals connected to the EXW scam, with additional charges filed against several others in subsequent months.

The lack of an extradition agreement between Austria and the United Arab Emirates posed significant challenges for prosecutors, leading some defendants to voluntarily surrender while others chose to flee.

Benjamin Herzog, one of the founders of EXW Wallet, pleaded guilty last December.

Following the verdict on 23 October, some convicted defendants are reportedly considering appealing their sentences.

Launched in late 2019, EXW Wallet promised daily returns on investment of 0.1% to 0.32% through its EXW tokens, but the scheme collapsed within months in 2020.

Additionally, the fraudsters promoted various real estate projects, and some defendants are under investigation for a separate cannabis-related fraud that allegedly defrauded 17,000 victims out of $17.2 million (16 million euros).