Arrested Crypto Fraudsters Blow Stolen Funds On Shark Tank, Wheels: Report
Five men allegedly spent the stolen money on a shark tank, private jet rides, sex workers and luxury cars in a $21.6 million crypto scam.
The criminals took $21.6 million (€20 million) from nearly 40,000 investors, including the EXW Wallet and EXW crypto token, Austrian news outlet Heutt reported on October 23.
Two of the defendants were sentenced to 5 years in prison, two were sentenced to 30 months and one to 18 months. Five others have been released and some continue to hide from authorities.
The fraud case at the Klagenfurt regional court was the largest in Austrian history, Heitt said.
Judge Claudia Bandon-Ortner handed down the sentence on October 23 after a two-month trial and 300 hours of deliberations.
According to Hewitt, the scammers lived like they were in a Hollywood movie – partying in some of Dubai's “postate” clubs and traveling between cities on private jets.
They even bought a shark tank in a villa, the backdrop behind which is a news and review site in Bali.
A listed house in Sydney shows what a lavish shark tank looks like inside the residence. Source: realestate.com.au
More than $100,000 was spent on sex workers, according to a July 12 article from BehindMLM.
“There was no shortage of money,” Heute said.
The operation was based in Dubai, but some of the stolen cash was transported to Austria (where most of the fraudsters came from) in plastic bags, Hewitt said.
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Austrian prosecutors indicted eight people involved in the XW fraud in September 2023, with more indictments in the following months.
There is no extradition treaty between Austria and the United Arab Emirates, which has made it difficult for prosecutors, Hewitt said, adding that some defendants surrendered voluntarily while others fled.
Benjamin Herzog, one of the founders of EXW Wallet, pleaded guilty last December, according to BehindMLM.
Some of those convicted in the Oct. 23 verdict plan to appeal.
EXW Wallet launched in late 2019, EXW tokens earn 0.1% to 0.32% daily investment return. The scam was busted several months later in 2020.
The fraudsters have expanded into real estate projects, and some defendants are being investigated in a cannabis-related fraud that allegedly defrauded 17,000 victims of $17.2 million (€16 million).
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