Just saw a major ruling from an Austrian court, and the scale of this crypto scam is truly shocking. Five people were convicted for the EXW-Token scam, involving up to $21.6 million, making it one of the largest crypto fraud cases in Austria's history.

The method used in this case is actually quite typical. These individuals promised investors a daily return of 0.1% to 0.32% on a token that doesn't actually exist. They also used the EXW brand to package various projects like real estate companies and car rental services to deceive people. As a result, they successfully scammed at least 40,000 investors, with total losses of 20 million euros.

The craziest part is how these people spent the money. They indulged in Dubai, buying luxury cars, renting private jets, and throwing lavish parties at high-end clubs. Some even installed a shark tank at home and filled their places with cash. This lifestyle looks straight out of a Hollywood blockbuster.

Based on their roles in the entire scam, the Klagenfurt District Court sentenced them accordingly. Two received 5 years in prison each, another two got 30 months (including 21 months probation), and one was sentenced to 18 months probation. Notably, Benjamin Herzog and Pirmin Troger, the co-founders of the EXW wallet, pleaded guilty as early as September 2023 and each received a 5-year sentence. The third founder, Manuel Batista, has not been caught yet.

The court clearly stated that this was not a project out of control but a carefully planned scam from the start, with no real profit concept at all.

This case actually reflects a bigger issue. Crypto scams are now rampant. The FBI reported that in 2023 alone, losses reached $5.6 billion, a 45% increase year-over-year. Recently, France held a trial for 20 people involved in a scam involving $30 million. In India, someone was sentenced to 5 years for defrauding over $20 million through fake exchanges. In the US, someone was fined over $3.6 million and sentenced to 20 years for a Ponzi scheme.

The Irish police reported that over 45% of investment scams in their country involve cryptocurrencies. This number really says a lot. Regulators are stepping up efforts to combat these crimes, but scammers still keep emerging nonstop. That’s why investors need to stay alert and not get blinded by promises of high returns.