The Vienna State Criminal Police Office has cleared a large-scale bitcoin fraud with a loss of at least 2.7 million euros. At least 300 investors were recruited in 2018 and 2019 via the Internet and personal mediation. It was initially determined against three men; the third in the group was “a follower who only came along later”.
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 per cent per week on investments in Bitcoin. According to an investigator, the promise could be made that the capital could be withdrawn after three months. Invest in 500 bitcoins, then it would be over, according to the exclusive promise. At that time, 500 bitcoins were worth around 2.7 million euros. If they were acquired, they would correspond to 580 million euros at the current exchange rate.
Four years ago, the investigators initially found no victims because the betrayed did not feel like such. However, the payments ended in 2021, and more and more victims finally reported the crime to the police, which 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. The responsible investigator said they showed up via zoom calls and tried to prevent the victims from reporting the crime. Both men had no actual 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. As a result, the men were arrested in July 2021. In addition, seven house searches took place in Vienna, and Lower Austria, cell phones, computers and cash, and 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.
Thirty account openings were carried out, and access 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.
Known to the police
The main perpetrator was already known to the police. The man has completed an apprenticeship but has never worked in this field. Instead, he had taught himself to trade. According to sources, 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 had already made a lot of money with cryptos themselves. Therefore, they assumed they were 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.
Both accused have not confessed. However, during interrogation, the older suspect stated that the younger one 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, a crime prevention officer and 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. He also mentioned the protection of the devices, including up-to-date virus software. Public WLANs should be avoided. For the expert, safe use of the web also includes a secure password with at least 20 characters. “Anything below that is not secure,” the police officer warned. And as a final point, he advised regular updates and backups just in case.
