I have closely followed this case coming from Austria, and I must say it represents one of the most significant processes related to crypto frauds in the country. An Austrian court has just sentenced five individuals connected to the EXW-Token scam to prison sentences, and the details are truly disturbing.

It all started with the EXW wallet, launched in 2019 as an elaborate MLM Ponzi scheme that deceived at least 40,000 investors out of approximately 20 million euros. They promised daily returns from 0.1% to 0.32%, obviously unrealistic. The accused guaranteed high profits on investments in a token that didn’t even exist, while simultaneously promoting other initiatives under the EXW brand, such as a real estate company and a car rental service.

What’s striking is how they used the stolen funds. Completely outrageous lifestyle: luxury cars, private jets, parties in exclusive clubs in Dubai. A villa with a shark tank, boxes full of cash scattered throughout the houses. Stuff that looks straight out of a Hollywood movie, as noted in the report.

The trial was lengthy, lasting an entire year with 60 days of hearings. Pirmin Troger, one of the co-founders along with Benjamin Herzog, had already pleaded guilty in September 2023 and received a five-year prison sentence. Herzog himself. Now the regional court of Klagenfurt has sentenced two of the defendants to five years in prison, another two to 30 months with 21 months suspended for three years of probation, and another to 18 months suspended. The third co-founder, Manuel Batista, remains in hiding.

The defense argued that they wanted to manage legitimate projects but things got out of hand. The court did not believe this version, establishing that the fraud was planned from the beginning. Pirmin Troger and the others knew exactly what they were doing.

What worries me is that these cases are multiplying. In October, a trial was initiated in France for a crypto scam involving 30 million dollars that involves 20 people. An Indian citizen was sentenced to five years for stealing over 20 million by falsifying Coinbase. An American court ordered Ponzi scheme promoter Forcount to pay 3.6 million dollars and serve 240 months in prison.

According to the FBI, in 2023 crypto frauds caused losses of 5.6 billion dollars, a 45% increase compared to the previous year. In Ireland, 45% of investment fraud cases involved cryptocurrencies. The numbers continue to grow despite increasingly severe sentences. The scammers show no signs of slowing down; they keep finding new ways to deceive investors by exploiting the allure of high returns and the complexity of blockchain technology.