Police clarified bitcoin fraud with millions in damage

Police clarified bitcoin fraud with millions in damage

78 victims are known across Europe, almost half of them come from Austria, and other victims are being sought. Two perpetrators were investigated, the main perpetrator is in custody, investigators reported on Wednesday in Vienna.

The two Austrians – 25 and 37 years old at the time of the crime – will be tried in Vienna on February 24th. They were arrested last summer, with the younger remaining in custody and the older being released after several months. It was originally determined against three men, the third in the group was, according to criminalists, “a follower who only came along later,” they reported to journalists on Wednesday.

Founded Da Vinci Investment Club

The investigators received the first clues about the cause in 2018. The duo founded the so-called “Da Vinci Investment Club” or “Da Vinci Fintech Executives Switzerland” in Switzerland and promised high returns of 2.5 percent per week on investments in Bitcoin. The promise could be made that the capital could be withdrawn after three months, according to an investigator. Invest in 500 bitcoins, then it would be over, according to the exclusive promise. 500 BTC was around 2.7 million euros at the time. If they were actually acquired, they would be worth 580 million euros at the current price.

Four years ago, the investigators initially found no victims because the betrayed did not feel like such. Smaller amounts were repeatedly repaid to the investors of the time, tempting them to invest larger amounts. Also, the value of bitcoin kept rising, which made investors want to wait. The payments came to an end in 2021, and more and more victims finally reported the crime to the police, who began extensive investigations. The three men were known by name – one used a false first name. They also appeared in front of the victims, including holding ID cards in front of the camera when investors became suspicious. The responsible investigator said they showed up via zoom calls and tried to prevent the victims from reporting the crime. Both men had no real residence for years, the main perpetrator comes from Lower Austria, the older accomplice from Vienna, where he also had a bogus address.

Through the “meticulous investigations, the actual whereabouts could be found out,” reported a police officer. The men were arrested in July 2021. In addition, seven house searches took place in Vienna and Lower Austria, cell phones, computers and cash as well as two weapons were secured, reported Matthias Hawlena from the investigative service of the State Criminal Police Office. The main perpetrator had obtained the weapons for “self-defence” because he had also been threatened, but by whom it was not possible to determine.

No more bitcoins found

30 account openings were carried out, and access data to bitcoin wallets (quasi the digital purse, note) was also secured. However, bitcoins themselves could no longer be confiscated. The duo financed a “lavish lifestyle” with the money from the investors, and they may have gambled away part of the bitcoins, the investigator responsible reported.

The main perpetrator was known to the police. The man has completed an apprenticeship, but has never worked in this field. He had taught himself to trade. According to his own statements, he had successfully invested in cryptos for private individuals before founding the exclusive Bitcoin Investment Club. In addition to the high returns, investors were also offered webinars with insider information. Most of the victims were by no means naive, but some of them were active in the crypto scene themselves, including young HTL graduates. The association was also based in the Swiss city of Zug, which is considered the Crypto Valley, where numerous companies from the crypto and blockchain industry have settled. The victims stated that some of them had already made a lot of money with cryptos themselves. They assumed they were actually acquiring up to 27 bitcoins with their payments to the club. The second accused, who was also in custody for several months, is an academic and his job was to win new customers.

Accused not confessed

Both accused have not confessed. The presumption of innocence applies to them. During his interrogation, the older man stated that the younger man had disappeared with the money. The trial begins on February 24 at the Vienna Regional Court. Victims who have also invested in the alleged Bitcoin VIP club are asked to contact the Vienna State Criminal Police Office on 01/31310/33800.

Jörg Kohlhofer from crime prevention and a specialist in cybercrime at the State Criminal Police Office gave five simple rules for the Internet. “First tip is always a healthy suspicion,” he said. Companies can be googled at any time, you can check whether the company is licensed on the Financial Market Authority website or in the register of associations. The third thing he mentioned was the protection of the devices, which also includes up-to-date virus software. Public WLANs should be avoided. For the expert, a secure password with at least 20 characters is essential for secure use of the web. “Anything below that is not secure,” the police officer warned. And as a final point, he advised regular updates and backups just in case.

Source: Nachrichten

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