Linzer arrested: Millions in damages after crypto scam with “LoopX”

The six suspects had professionally offered a new cryptocurrency between December 2017 and February 2018, promised weekly returns of up to ten percent and fled after making payments totaling several million euros.

• also read: Suspected crypto fraudsters from Upper Austria: 283,000 euros in damage

In late summer 2017, the six-member group hatched a plan to set up a cryptocurrency under the name “LoopX” and make quick money with the promise of high profits. “The suspects acted almost like a company,” explained Martin Ortner from the WKStA during a background discussion in C4. “The token was actively advertised via social media channels, and was also advertised via YouTubers and influencers,” added the responsible department head, Martin Grasel from C4. In December 2017, ten million tokens were launched against corresponding payments via Bitcoin or Etherum. After investing several hundred victims worldwide, the group went underground in February 2018. “LoopX” ultimately turned out to be completely worthless.

Trail led to Austria

The “exit scam” ultimately led to the first advertisements in Switzerland. “The trail then led to Austria,” said Grasel. After investigations by the State Criminal Police Office of Upper Austria, the Federal Criminal Police Office took over the investigation. C4’s cybercrime experts then managed to trace and analyze the entire history of all transactions. The further clues led the investigators across Austria and also abroad – including Germany, the Czech Republic, Cyprus and Thailand.

29-year-old arrested in Linz

After years of investigation, an EU arrest warrant was finally issued against the group in cooperation with the European judicial authority Eurojust. This was followed last October by a concerted campaign in Austria and abroad as part of “Operation LoopX”. A 29-year-old Austrian was arrested in Linz together with the Cobra task force, and a 38-year-old Austrian was arrested in Cyprus. In Prague, the handcuffs clicked for a 34-year-old Czech. Europol and the Czech and Cypriot authorities were also involved. Subsequently, three more Austrians aged 36 and 40 were arrested in Styria and Upper Austria by the beginning of 2024.

“New quality” in the area of ​​cybercrime

During the raids, around 750,000 euros in various currencies, two sports cars and a property worth almost 1.5 million euros were confiscated. The total damage amount is around six million euros. The accused are now waiting for the relevant legal proceedings.

WKStA spokesman Ortner emphasized in the background discussion that the case marked “a new quality” in the area of ​​cybercrime. The director of the Federal Criminal Police Office, Andreas Holzer, described the success of the investigation in a broadcast on Wednesday as a “prime example” of an international cross-agency “joining ranks”.

The police advise being skeptical about particularly promising investment offers on the Internet. “If something seems ‘too good to be true’, it is most likely a fraud,” the Federal Criminal Police Office said in a statement. Research online for possible warnings or complaints about suspicious platforms was also recommended. Reference was also made to the Financial Market Authority (www.fma.at) as a service point. It is also advisable to take a look at the imprint and the provider’s general terms and conditions (GTC). However, the police and public prosecutor’s office particularly called for potential fraud to be reported as quickly as possible. “This is not a shame, but also helps to protect others from harm,” WKStA leader Ilse-Maria Vrabl-Sanda was quoted as saying in a broadcast.