Benjamin Herzog and four other perpetrators from Klagenfurt sentenced: Austria's largest cryptocurrency fraud trial ends with prison sentences

The Regional Court of Klagenfurt has handed down a groundbreaking verdict, sentencing five individuals involved in the EXW token scam—one of the largest cryptocurrency fraud schemes in Austrian legal history. Benjamin Herzog, one of the main perpetrators, was among those whose actions systematically exploited the trust of approximately 40,000 investors. The trial, which lasted a full year and comprised 60 court days, revealed the alarming complexity of this criminal network.

The EXW Wallet System: A Sophisticated MLM Ponzi Scheme with Deceptive Promises

Launched in 2019, the EXW Wallet was not a simple scam— it was an elaborate multi-level marketing Ponzi scheme that lured investors with unrealistic daily returns between 0.1% and 0.32%. The operators, led by Benjamin Herzog, Pirmin Troger, and the fugitive Manuel Batista, built a web of deception. They promised high profits through investments in a token that essentially did not exist. Simultaneously, they established a network of front companies—a real estate business, a car rental service, and other ventures under the EXW brand—to conceal their fraudulent activities.

The system operated on a classic Ponzi pattern: new investments were used to pay returns to earlier investors, creating the illusion of profitability. This wave of deception attracted more unsuspecting victims. Ultimately, this scheme generated at least €20 million—approximately $21.6 million—in stolen assets. The system collapsed in 2020 under its own weight but was shortly reactivated under the new name “Exchange World” to hinder investigations.

Benjamin Herzog, Pirmin Troger, and the Decadent Lifestyle: How the Profits Were Spent

What Benjamin Herzog and his accomplices did with the millions of euros reads like a Hollywood blockbuster script. The fraudsters led an outrageously luxurious lifestyle funded by the stolen money of unwitting investors. They invested in private jets, acquired a fleet of luxury cars, and threw extravagant parties in Dubai’s upscale clubs. One of their villas was equipped with absurd features—including an aquarium with real sharks—while cash-filled shoe boxes were stacked in their homes.

The operational hub of this illegal empire was Dubai, but Herzog and his accomplices deliberately transferred part of the stolen funds back to Austria to cover their tracks and acquire local assets.

The Klagenfurt Regional Court Verdict: Prison Sentences for the Main Perpetrators

The Klagenfurt Regional Court issued its verdict after carefully examining all evidence. Benjamin Herzog and Pirmin Troger, the first two identified co-founders, were already convicted in September 2023 in a separate trial and sentenced to five years in prison. In the latest ruling, the court also sentenced two other defendants to five years each, while two others received 30 months in prison—with 21 months suspended and a three-year probation period. A fifth defendant received an 18-month suspended sentence.

The defendants claimed in court that they intended to carry out legitimate investment projects that simply “got out of control.” The Klagenfurt court completely dismissed this explanation, finding that the criminal scheme was planned from the outset with full intent—not for genuine economic activity, but solely for the enrichment of the operators. Manuel Batista, the third co-founder, remains at large and is still on the run.

A Global Phenomenon: Why Crypto Frauds Are Escalating

The case of Herzog and his accomplices is not isolated. Cryptocurrency scams are proliferating worldwide at an alarming rate. Fraudsters systematically exploit the appeal of high returns and the technological complexity of blockchain to deceive investors. The range of these scams is diverse: fake projects, Ponzi-like structures, misleading token sales, and complex multi-level marketing systems.

In October 2025, France initiated a fraud trial against 20 suspects involved in a crypto scam that defrauded investors of $30 million under the guise of cryptocurrency investments. Shortly after, an Indian perpetrator was sentenced to five years in prison for stealing over $20 million from investors by impersonating a Coinbase exchange representative. In the U.S., a federal court ordered a promoter of the Forcount Ponzi scheme to pay over $3.6 million in damages and serve a 20-year prison sentence.

Despite these hefty penalties, scammers continue their activities. According to the FBI, crypto-related scams and associated frauds caused over $5.6 billion in losses worldwide in 2023 alone—a 45% increase from the previous year. The Irish National Police reported in August that over 45% of all investment fraud investigations in the country involved cryptocurrencies.

Impact and Outlook: How Regulators Are Responding

Regulatory authorities worldwide recognize the urgency and are tightening measures against fraudulent activities. The verdicts from Klagenfurt and international justice agencies signal a zero-tolerance policy toward crypto fraudsters. However, rising scam numbers show that preventive measures and public awareness are just as crucial as law enforcement. Investors must learn to recognize warning signs—unrealistic returns, lack of transparency, and lofty promises are classic indicators of fraudulent schemes.

The case of Herzog and the Klagenfurt court remains a textbook example of how organized criminal networks abuse the cryptocurrency industry and why strict legal consequences and international cooperation are essential.