Austria’s Biggest Fraud Trial: €20M Crypto Scam Fueled Lavish Lifestyle and Shark Tank

Key Takeaways

• Austria concludes the biggest fraud trial involving a 20 million euro crypto ponzi scheme.
• The eight accused went on trial in September of last year.
• The court sentenced five accused to prison sentences ranging between 5 and 3 years.

A €20 million crypto Ponzi scheme has become subject to Austria’s biggest-ever fraud trial. 

According to media reports , 11 suspects from Austria, Croatia, and Italy went on trial for over 60 days at the Klagenfurt Regional Court.

The accused siphoned millions from unsuspecting investors on the promise of hefty returns.

One-Year Trial Ends With Five Convictions

The Public Prosecutors Office filed charges against eight accused in the crypto ponzi scheme in June 2023. The trials began two months later, in September, and after nearly a year of the trial and 60 days of the hearing, the case finally ended.

The defendants were accused of commercial fraud, money laundering, pyramid schemes, and criminal association.

The total loss in the case is estimated to be 20 million euros, up from 14 million at the start of the trial last year. While one of the witnesses in the case claimed the damages could be as high as 100 million euros.

Two defendants received five years without parole. Two other defendants were sentenced to 30 months, of which 21 were suspended. One defendant was given a three-year sentence with an 18-month suspension. The remaining three offenders’ convictions will be considered while determining their sentences.

Fake Tokens, Lavish Expenditure, and a Celebrity

The elaborate crypto scam had a celebrity stepson at the center of the schemes, who used his influence to convince investors to put their money in real estate and crypto tokens such as EXW tokens. 

When investors paid a certain amount of money to invest in advised assets, scammers pocketed the money and used it to fund their lavish lifestyle.

The preparators used investors’ money to buy high-end vehicles, club nights in Dubai, property investments, and a shark tank.

The crypto pyramid scheme reportedly duped 40,000 investors and led a luxurious life, spending the investor’s money.

Crypto Ponzi scheme. Source: Heute

The investigation agency claimed that the scammer group used several complex money transfer techniques to evade detection. 

Police claimed that the gang’s methods, which included swapping money via cryptocurrency platforms, keeping cash in shoe boxes, and carrying money in plastic bags, made it especially challenging to take down the gang.