Cryptocurrency fraud scandal in Austria: Court convicts five individuals for fake token EXW

Austrian Court Sentences Five Individuals for Fraud Related to EXW Token

In one of the largest cryptocurrency fraud cases in Austrian history, the Regional Court in Klagenfurt has convicted five individuals involved in a fraudulent scheme associated with the fake EXW token. The accused promised victims high profits from investing in a non-existent token, utilizing a complex pyramid MLM scheme in cryptocurrencies.

EXW Wallet Fraud

The EXW wallet, launched in 2019, brought scammers a staggering 20 million euros (approximately 21.6 million dollars) at the expense of at least 40,000 investors. The fraudsters also promoted other ventures under the EXW brand, such as real estate investments and car rentals.

Scammers’ Lavish Lifestyle with Victims’ Money

The ill-gotten gains from the fraud were used by the accused to maintain a lavish lifestyle compared to a scene from a Hollywood movie. Neighbors were showered with luxurious cars, private jets, and extravagant parties in clubs in Dubai.

Legal Consequences for the Fraudsters

As a result of the trial, two of the accused were sentenced to five years in prison, two others received 30-month sentences, including 21 months suspended, and one got 18 months suspended. Cryptocurrency fraud-related offenses are becoming increasingly common, with scammers exploiting the high returns and complexity of blockchain technology to deceive investors.

Increasing Awareness and Regulatory Response

Regulatory bodies worldwide are tightening regulations on cryptocurrency fraud, aiming to protect investors and ensure the integrity of the cryptocurrency market. The FBI reports that losses related to cryptocurrency fraud in 2023 exceeded 5.6 billion dollars, underscoring the scale of the issue. The Irish National Police also raise alarm, stating that over 45% of investment fraud in the country involved cryptocurrencies.