Fraud around Bitcoins

Cryptic stories instead of crypto assets

The defendant denied the accusations, but acknowledged the damage.

(Bild: Krone KREATIV, Stockner)

A 60-year-old would-be billionaire is said to have caused millions of euros worth of damage to his victims with Bitcoin scams. The victims testified today on the final day of the trial in Graz. The accused denied his guilt until the end. Then the verdict was handed down: nine years in prison; not legally binding.

On Tuesday, the second and final round of the trial against the 60-year-old Lower Austrian, who allegedly defrauded around ten investors of almost one million euros, took place at the Graz Regional Court for Criminal Matters. The alleged billionaire, who liked to stroll through Monaco and travel by helicopter, denied the crime until the end.

The defendant already has 13 previous convictions and 18 years in prison. The current allegations also involve fraud again: The victims bought Bitcoins through the 60-year-old, which he managed in his wallet (electronic purse). They then had no access to the cryptocurrency. The agreement was for four years, ten percent profit per year. But they never saw the money again.

Middleman uncovered fraud
The victims had their say at today's trial. It is curious that many of the witnesses neither knew the accused personally nor communicated with him directly. The contact between them and the accused was established by an intermediary who had friendly or family ties to the victims and supported them in investing in cryptocurrencies. He then uncovered the alleged fraud and reported it to the police.

"I don't want my money back, I want my Bitcoins," replied one witness when asked by Judge Andreas Rom whether she was demanding compensation from the defendant. The victim had invested around 50,000 euros, and her bitcoins would be worth 140,000 euros today. "But before I get nothing, I'll take the euros..."

"It's as if I had bought a painting by an unknown artist who is now famous. I don't want my money, I want the painting," explains another victim, a real estate agent from Germany. He claims to have bought 352 Bitcoins from the accused over ten years - today's value: over 33 million dollars.

"He was different from others"
Most of the victims are people who are not familiar with cryptocurrencies but are willing to take risks. The accused used clever phrases and foreign terms to build trust and persuade them to invest. Judge Rom wanted to know from the witnesses why they entrusted their money to a virtual stranger. "He was different from the others," said one of the witnesses. 

In the afternoon - after a short deliberation - the lay jury handed down its verdict: nine years in prison. The defendant immediately lodged an appeal. The verdict is therefore not final. Where the money is remains a mystery...