Pirmin Troger and the co-conspirators convicted in Austria's biggest crypto scandal: 20 million euros in fraud

The Austrian court has issued final verdicts against five defendants connected to one of the largest cryptocurrency fraud schemes in the country’s history. Among the accused are Pirmin Troger, one of the co-founders of the controversial EXW wallet, and four other individuals involved in the illicit operation that deceived tens of thousands of investors across Europe. This case marks a turning point in the fight against crypto scams, highlighting how authorities are ramping up legal actions against wrongdoers in the digital sector.

The EXW Operation: how a Ponzi scheme deceived 40,000 investors

The EXW wallet, launched in 2019, was actually a sophisticated pyramid structure in the cryptocurrency sector that operated as an MLM scheme. The platform attracted at least 40,000 investors, taking a total of 20 million euros, equivalent to about 21.6 million dollars. The promoters of the operation offered unreasonable returns, promising daily earnings ranging from 0.1% to 0.32%, figures that are decidedly unrealistic in the traditional financial context.

The illicit activity went far beyond a simple fraudulent token. Pirmin Troger and his associates diversified their criminal activities by creating under the EXW brand a fake real estate company and a nonexistent car rental service, further deceiving victims with the promise of investment opportunities “legitimized” by the variety of services offered. This multifaceted approach made the scheme even more sophisticated and difficult to identify for regulators.

Pirmin Troger and Benjamin Herzog: the sentences from the Klagenfurt Court

After a year-long trial and 60 days of hearings, the Klagenfurt Regional Court delivered its verdicts in March 2026. Pirmin Troger and Benjamin Herzog, the two most prominent co-founders of the EXW wallet, were each sentenced to five years in prison. The other three defendants received shorter sentences: two of them received 30-month sentences with 21 months suspended over a three-year probation period, while the fifth defendant received an 18-month suspended sentence.

The court categorically rejected the defendants’ attempts to minimize their responsibilities. Pirmin Troger and the others argued that they intended to start legitimate investment projects and that “things got out of hand,” but the judges concluded that the fraud was deliberately orchestrated from the beginning, with no real intent to generate profits for investors. In September 2023, both Pirmin Troger and Benjamin Herzog had already pleaded guilty to fraud, speeding up the process toward final sentences. Manuel Batista, the third co-founder of the EXW wallet, remains hidden.

From the luxury of Dubai to 240 months in prison: the downfall of crypto criminals

The operation had its main operational base in Dubai, where the defendants accumulated illicit wealth from the scams. The funds taken from investors were used to finance a luxurious and extravagant lifestyle worthy of a Hollywood film. Pirmin Troger and his associates indulged in luxury cars, private jet charters, and lavish parties in exclusive clubs in the capital of the United Arab Emirates. Their homes were decorated with opulent items, including an extraordinary villa equipped with a shark tank and rooms filled with boxes of cash.

A significant portion of the stolen funds was transferred to Austria, where the defendants carried out further money laundering operations. This geographical extension of the operation involved authorities in multiple countries and further complicated the investigations. Evidence of their extravagant lifestyle was a decisive element in the court’s conviction of the premeditated and conscious nature of the crime.

The global phenomenon of crypto fraud: alarming data

The case of Pirmin Troger and his accomplices is not isolated. In 2023, according to the FBI report, frauds and scams involving cryptocurrencies and digital assets caused over 5.6 billion dollars in losses, marking a dramatic 45% increase from the previous year. This data reveals a concerning trend: despite increasingly severe legal actions, criminals show no signs of slowing down.

Regulatory authorities worldwide are ramping up their actions against fraudulent activities to protect investors and maintain trust in the cryptocurrency market. In October 2026, a trial began in France involving 20 individuals allegedly implicated in a crypto scam that stole 30 million dollars from investors. Just days earlier, an Indian citizen was sentenced to five years in prison for stealing over 20 million dollars from investors through the forgery of the Coinbase exchange.

In another significant ruling, a U.S. district court ordered a promoter of the Ponzi scheme Forcount to pay over 3.6 million dollars in restitution to victims and to serve a prison sentence of 240 months. Meanwhile, the Irish national police reported in August that over 45% of investment fraud cases in the country specifically involved cryptocurrencies.

These converging statistics and rulings demonstrate that authorities are finally adopting a coordinated and decisive approach against crypto criminals. However, the continued rise in fraud suggests that investor awareness and regulation will need to evolve further to address the increasing sophistication of illicit schemes like the one orchestrated by Pirmin Troger and his co-conspirators.