A court in Klagenfurt, Austria, has sentenced five people to prison terms for their roles in a $21.6 million crypto fraud scheme. The fraudsters, who raised money from over 40,000 investors through various investment schemes, are reported to have spent the stolen funds on luxury goods and travel.
According to Austrian news outlet Heute, the defendants used the money to fund a lavish lifestyle, including private jet rides, a luxury car, and real estate projects. The fraud trial, which lasted two months, is said to be the largest in Austrian history.
The judge, Claudia Bandion-Ortner, handed down sentences ranging from 18 months to five years in prison. Several other individuals are still being investigated or have fled the country.
The fraudulent operation, which was based in Dubai, involved promising investors high daily returns on a cryptocurrency token called EXW. The scheme collapsed in 2020.
This case highlights the risks associated with investing in cryptocurrencies and the importance of careful due diligence before investing in any financial product.