Austria has concluded its largest-ever fraud trial, which centred around a sophisticated €20 million crypto Ponzi scheme. The trial, held at the Klagenfurt Regional Court, lasted 60 days and led to five convictions involving eleven suspects from Austria, Croatia, and Italy.
According to a report from a local news outlet, two of the main defendants received five-year sentences without parole, while two others were sentenced to 30 months each, with 21 months suspended for a three-year probationary period. Another defendant received 18 months suspended, also for three years.
The defendants were accused of deceiving thousands of investors with false promises of significant returns on investments in real estate and cryptocurrency, including fake tokens like EXW.
The Ponzi scheme reportedly affected around 40,000 investors. The perpetrators employed complex money laundering tactics, such as transferring funds through cryptocurrency platforms, hiding cash in shoeboxes, and transporting money in plastic bags, which helped them evade detection for a significant period.
Initially estimated at €14 million, total losses swelled to €20 million during the trial. Some witnesses reportedly suggested the real damages could be as high as €100 million. The fraudsters allegedly used the stolen funds to finance a lavish lifestyle, including purchases of luxury cars, extravagant nights out in Dubai, and even an investment in a shark tank.
In addition to their sentences, the convicted individuals were required to cover all legal costs and pay damages. Some of the defendants have reportedly already indicated their intention to appeal the convictions if upheld.
In another development, the Australian Securities and Investments Commission (ASIC) charged Grant Colthup, former CEO of Mine Digital, with fraud after a customer failed to receive 2.2 million Australian dollars (around $1.47 million) worth of Bitcoin in July 2022. This is one of several high-profile legal actions ASIC has taken against cryptocurrency firms in 2024.
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