I just saw a verdict from an Austrian court, and honestly, the scale of this case is quite shocking. Five people were sentenced for a crypto scam involving a total of $21.6 million, making it the largest crypto scam in Austria's history. After a year of trial and 60 days of hearings, the court handed down its verdict, with two defendants each receiving a five-year prison sentence. These two are Benjamin Herzog and another accomplice, who are the main masterminds behind the scam called EXW.

This EXW wallet has been operating since 2019. On the surface, it appears to be an investment project, but in reality, it’s a carefully designed multi-level marketing Ponzi scheme. They promised at least 40k investors daily returns of 0.1% to 0.32%, ultimately scamming €40k. Victims were promised to invest in a token that didn’t even exist, while the scammers also used the EXW brand to run other businesses like real estate and car rentals as cover.

The craziest part is how these scammers spent the money. They lived a Hollywood-style luxury life in Dubai, buying luxury cars, flying private jets, and throwing parties at high-end nightclubs. One person even installed a shark tank in a villa, with rooms filled with shoe boxes full of cash. Some of the money was transferred to Austria, and the Klagenfurt District Court is handling the case.

The court’s verdict was very clear: this was a carefully planned scam from the start, not a failed investment project. Two of the defendants received five years, two others got 30 months (with 21 months suspended), and another received 18 months suspended. Benjamin Herzog is one of the co-founders of this scheme, and he and Pirmin Troger pleaded guilty back in September 2023. The third co-founder, Manuel Batista, is still at large.

Looking at this case, you can understand why global efforts to crack down on crypto scams are intensifying. Similar cases are increasing—scammers exploit high returns and the complexity of blockchain to deceive investors. This year, an Indian man was sentenced to five years for impersonating an exchange and stealing over $20 million, and France is also investigating a case involving 20 people and $30 million in fraud.

According to FBI data, in 2023 alone, crypto-related scams caused over $5.6 billion in losses, a 45% increase year-over-year. The number is still rising. So, when investing in crypto assets, you really need to be cautious—projects promising fixed high returns are mostly scams.