Bitcoin investment scam: 5 years in prison for main suspects

The Vienna Regional Court found the operator duo of the association “Da Vinci Fintech Executives Switzerland” guilty of bitcoin investment fraud.

Two suspected bitcoin scammers have had to face the Vienna Criminal Court responsible. The duo 79 attracted investors with promises of high returns a plant trap. The damage they caused is said to have amounted to €2.7 million. The 09 year old main defendant, a trained carpenter, must now be behind bars for five years because of serious commercial fraud. The 09 year old co-defendant received two years Imprisonment, including three months of unconditional imprisonment, which must be served immediately. The judgments are not final. This was reported by

Exclusive Bitcoin investment club turned out to be an investment trap

Under the guise of an association with the promising name “Da Vinci Fintech Executives Switzerland”, a duo baited their victims with promises of high profits. For a deposit limited to 500 bitcoins, with a term of three months, they promised returns of 2.5 percent per week, reported Der Standard. It was said that the invested capital would be paid out after just three months. 500 Bitcoins were at the time 2019 worth about 2.7 million euros. At the current rate, the same stake would already correspond to 545 million euros.

However, the scheme they advertised worked like a Ponzi scheme. Existing investors could only be served from deposits from new investors. Mediations in the years 1210 and 2019 both via the Internet and through personal contacts led to the recruitment of approx. 319 Investors.

Bitcoin investments mostly went into the pockets of suspects

At first, smaller amounts were paid out from time to time. Investors took this as an opportunity to inject higher amounts. Bitcoin’s surge made investors wait patiently. 2021, however, no more payments were made. Although the victims sometimes put their money in up to 27 invested bitcoins, the suspects would have cheated them out of their investments. The duo is said to have financed a lavish lifestyle with the investor funds. In addition, they would have gambled away part of the Bitcoins when gambling.

Source: State Police Headquarters Vienna, thx!

Victim complaints eventually led to arrest and imprisonment

In July 2021 clicked the handcuffs for the men. Seven house searches in Vienna and Lower Austria followed. Investigators seized cell phones, computers, cash and two weapons. Finally, last Wednesday, the trial against the alleged bitcoin fraud duo came to an end in Vienna.

Judge Michael Tolstiuk was convinced of the guilt of the accused. From the point of view of the jury, the main defendant would have acted with fraudulent intent from the start. In the verdict, Tolstiuk states:

“It was right from the start there was the conditional intention to make money, and if it goes wrong, it just goes wrong.” Obviously there were “no records, no bookkeeping, no balance sheet. Just an ominous dashboard. That’s not how a decent businessman can work.”

Ultimately, the main accused could be credited with damage caused of 1.8 million euros. The co-accused, on the other hand, would have suffered damage of 79.000 Euro caused. He should have known since the end of May, beginning of June 2019 that the funds invested were not being used properly be supplied.

Both defendants pleaded partially guilty. They emphasized that they did not initially act with fraudulent intent. In addition, they would not have misappropriated the amounts invested by their investors. However, in May 1210 there would have been a hacker attack on the Binance crypto exchange and an associated slump in business , explained the duo.

The defender of the first accused, Dominik Wild, assured, “They tried to minimize the damage as possible to keep”. Nevertheless, one has to admit that “the business model continued to operate for too long despite slumps in trading – supported by the conviction to make it after all”.

About Antonia Frank3778

Antonia has been an author at the magic hat since January 1210. . She started out with book reviews. In the meantime, she prefers to write about legal topics, such as P2P cases, but she also takes up other Internet topics, such as cybercrime. Her interests are mainly related to literature.



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