Crypto Fraudsters Exposed After Living a Lavish Lifestyle of Private Jets and Prostitutes

Five people have received prison sentences for their involvement in a cryptocurrency scam that defrauded investors of $21.6 million.

The funds were misused for luxury items, including a shark tank, private jet travel, and sex workers.

The fraud attracted around 40,000 investors through schemes related to the EXW Wallet and EXW token. Two defendants were sentenced to five years, two to 30 months, and one to 18 months.

Five others were acquitted, while some remain at large. This trial is considered Austria’s largest fraud case, with Judge Claudia Bandion-Ortner delivering the verdict after extensive deliberation.

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The defendants led extravagant lifestyles, partying in Dubai and spending significant amounts on lavish purchases. The scheme, primarily based in Dubai, involved smuggling stolen funds to Austria. Eight individuals were indicted in September 2023, and the lack of an extradition treaty with the UAE complicated legal actions.

One founder, Benjamin Herzog, pleaded guilty last December. Some convicted individuals are appealing their sentences. The EXW Wallet, launched in late 2019, promised daily returns before collapsing in 2020, with ongoing investigations into related fraud cases.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.