High prison sentences for Bitcoin fraud with 13 million euros in losses

In Austria, a 58-year-old man and his 81-year-old father have been sentenced to prison for allegedly scamming thirteen million euros in cryptocurrency markets from unsuspecting investors. This was stated by the Austrian Federal Criminal Police Office in a report. The statement claims that the two offered their victims high returns on money and Bitcoin investments on two online platforms, attracting at least 100 people mainly from Austria, Switzerland and Germany. It is further alleged that the two developed a Ponzi scheme to locate even more victims.

Detailed request

The investigation began in November 2019 following receipt of a confidential report. In the period from the end of 2018 to mid-2020, two individuals, who have since been convicted, proposed high profits on investments on the platforms "CMC - Crypto Market Consulting" and "Minerva Trading Bot". These funds were to be managed by professional "traders" on the crypto markets. According to the report, at least 100 victims invested around 13 million euros in cash and bitcoins. The victims also received rewards for referring other investors.

The situation of the Austrian and his father shows how fraudsters take advantage of people's inexperience in the cryptocurrency market. It underlines the need for better protection for investors in digital currencies.

Facebook also affected

In response, Facebook stated that it will introduce a new set of security protocols for its Libra cryptocurrency project.

According to the statement, numerous law enforcement agencies in Austria, Germany, Switzerland and Bulgaria were involved in the complex investigation into the "Internet crime scene". In October 2021, the now 58-year-old was arrested in Bulgaria and brought back to Austria; both he and his father had already confessed. The son was sentenced to four and a half years in prison by the Vienna Regional Court in mid-December, his father to 30 months (20 of which were conditional). This trial is reminiscent of the fraud committed by the "Da Vinci Fintech Executives Switzerland" association, which caused losses of up to 2.7 million euros. Those responsible were all sentenced to prison, as reported by ORF in May 2022; the main defendant received five years.