Benjamin Herzog and the Klagenfurt Verdicts: Austria's Largest Crypto Scam Goes to Court

The Klagenfurt Regional Court has made a series of landmark decisions in one of the country’s most spectacular cryptocurrency fraud cases. Benjamin Herzog, one of the main suspects in the EXW scam complex, was sentenced along with four others after an intensive criminal trial that kept the judiciary busy for months. The case from Klagenfurt sheds light on the growing risks in the crypto sector and demonstrates how organized criminal structures defraud thousands of unsuspecting investors out of billions.

The EXW Scheme: A Devious Ponzi Network Centered on Benjamin Herzog

The fraudsters built an elaborate multi-level marketing Ponzi scheme around the fictitious EXW Wallet, launched in 2019. Benjamin Herzog and his co-conspirators promised naive investors fantastic daily returns between 0.1 and 0.32 percent — profits that never actually existed. The scheme attracted at least 40,000 desperate savers who wanted to invest in the fraudulent tokens.

To make the deception more credible, Benjamin Herzog established a veritable empire of various fictitious companies under the EXW umbrella: alongside the fake crypto wallet, there was a real estate business and a car rental service. These fronts were meant to give investors a sense of security. Simultaneously, the perpetrators aggressively promoted higher levels of the MLM network, a classic hallmark of pyramid schemes.

The Collapse of the Lie: From 2020 to the Indictment

The fragile house of cards collapsed in 2020 when the promised returns failed to materialize and the system became mathematically unsustainable. But here, the audacity of the fraudsters led by Benjamin Herzog shows: they simply restarted the operation and disguised it under the name Exchange World. The fraud continued unabated — for four years. Only regulatory investigations finally brought this activity to an end.

Victims lost a total of 20 million euros, approximately 21.6 million dollars. A massive fortune extorted from the hopes and trust of honest people.

The Klagenfurt Verdict: Benjamin Herzog Sentenced to Five Years in Prison

The Klagenfurt Regional Court delivered a clear message at sentencing. Benjamin Herzog and co-founder Pirmin Troger both received five-year prison sentences. Two other defendants were sentenced to 30 months, with 21 months suspended on probation for three years. A fifth defendant received an 18-month probation sentence.

The court rejected the defendants’ claims that these were legitimate investment projects that simply “got out of control.” The judges found that the fraud was planned from the start, strategically calculated, with no genuine business purpose. Benjamin Herzog and his accomplices did not stick to their words — they packed their bags and moved their dirty operations to Dubai.

The Dream of Stolen Millions

With the stolen millions, the fraudsters led lives straight out of Hollywood. Benjamin Herzog and the others rented private jets, bought luxury cars, and threw lavish parties in Dubai’s upscale clubs. They decorated their villas with unimaginable luxury — one villa even had a shark tank. Shoe boxes full of cash lay scattered on the floors.

Some of this illegally amassed loot was transferred back to Austria. But even this precaution couldn’t save them: authorities traced the money flows, the accounts, the connections.

Where is Manuel Batista?

The third co-founder, Manuel Batista, remains at large. Authorities are still searching for him. An arrest warrant is in place.

Global Wave of Crypto Fraud and Reactions

The Klagenfurt case is not isolated. Looking at international developments reveals an alarming trend. In France, in October 2025, criminal proceedings were initiated against 20 individuals operating a $30 million fraud network. An Indian perpetrator was sentenced to five years in prison for stealing over $20 million by impersonating the legitimate exchange Coinbase. An American federal court ordered a promoter of the Forcount Ponzi scheme to pay over $3.6 million in restitution and serve 240 months.

According to the FBI, losses from crypto scams and digital asset thefts in 2023 exceeded $5.6 billion — a 45 percent increase compared to the previous year. Ireland’s national police reported that over 45 percent of all investment fraud cases in the country involved cryptocurrency.

However, the punishments, no matter how severe, do not deter the fraudsters. Apparently, they continue to weigh the risks and hope to remain undetected. Regulatory authorities worldwide are continuously tightening measures: stricter licensing, international cooperation, financial account monitoring. The case of Benjamin Herzog from Klagenfurt remains a warning example: those who sell their conscience in the crypto space will eventually be held accountable.