Jailed crypto scammers spent $21.6M on luxury and excess

Five individuals have been sentenced to prison for their involvement in a $21.6 million cryptocurrency fraud scheme that defrauded over 40,000 investors.

The fraudsters reportedly squandered the stolen funds on lavish purchases, including a shark tank, private jet rides, and more than $100,000 on sex workers.

The group amassed $21.6 million through various investment schemes, such as the EXW Wallet and the EXW crypto token, as reported by the Austrian news outlet Heute on October 23.

In the recent verdict at the Klagenfurt Regional Court, two defendants received five-year sentences, two others were sentenced to 30 months, and one individual received an 18-month prison term.

The court proceedings marked the largest fraud trial in Austrian history, spanning two months and involving over 300 hours of negotiations.

Judge Claudia Bandion-Ortner delivered the sentences on October 23, following extensive deliberation.

According to Heute, the fraudsters led extravagant lifestyles reminiscent of a Hollywood film, indulging in lavish parties at Dubai's upscale clubs and traveling in private jets.

They even installed a shark tank in a villa, reportedly located in Bali, as part of their extravagant spending.

Reports indicated that these individuals spent significant sums on luxury items and entertainment, leading to a lifestyle with “no shortage of money.”

The fraudulent operation was based in Dubai, with some of the stolen cash transported to Austria in plastic bags, as noted by Heute.

In September 2023, Austrian prosecutors indicted eight people linked to the EXW scam, with several more facing charges in subsequent months.

The lack of an extradition agreement between Austria and the United Arab Emirates complicated legal proceedings, although some defendants voluntarily surrendered while others fled.

One founder of EXW Wallet, Benjamin Herzog, pleaded guilty in December.

The scheme, which launched in late 2019, promised daily returns on investments but collapsed in 2020, prompting ongoing investigations into associated fraud cases.