In the world of cryptocurrencies, scams and fraudulent schemes are unfortunately not uncommon. One such scheme that gained notoriety is the EXW Wallet Ponzi scheme.
In this article, we will delve into the details of this scheme, including its background, the collapse of the company, the criminal trial, and the current status of the investigation. We will also explore the key players involved and their alleged roles in the scam.
EXW Wallet, also known as Exchange Wallet, emerged in late 2019 as a multi-level marketing (MLM) crypto Ponzi scheme. Operating through a mobile app, the company lured investors with the promise of daily returns ranging from 0.1% to 0.32%.
Christian Kurt Singer was cited as the CEO of the company during our research. However, the specifics of the investigation into EXW Wallet by Austrian authorities remain sketchy.
The collapse of EXW Wallet came in 2020, leaving approximately 40,000 investors defrauded of €14 million euros.
Austrian prosecutors allege that the money obtained from investors was never invested in cryptocurrencies but instead went directly into the pockets of the defendants. Reports suggest that the funds were used for extravagant personal expenses, including private jets, luxury cars, and expensive watches.
The criminal trial for the EXW Wallet Ponzi scheme began on September 27th, with limited details available to the public. The trial is expected to last several months, and each of the eight suspects faces a potential prison sentence ranging from one to ten years.
While the trial is ongoing, Austrian authorities continue their investigation into an additional fourteen individuals connected to EXW Wallet.
The lack of regulation or the presence of poor regulation is a huge red flag. It means EXW Wallet is a scam and most likely, an illegal operation.
Companies offering investment services or opportunities without having a license can vanish without leaving a trace. Furthermore, the lack of a regulatory license allows them to get away with it and face no legal consequences.
That’s why it’s vital for you to always check a company’s regulation status as well as its license information. The presence of a license allows consumers to reach out to an authority if something goes wrong.
In the case of EXW Wallet, victims have nowhere to go due to the absence of a watchdog or license.
You should ask yourself the following questions when you come across a new investment firm or opportunity:
- Does the investment provider maintain transparency about its CEO?
- Do they have a license from a renowned regulatory authority?
- If the need arises, can I reach out to an authority to report this company as a scam?
The international connections of the EXW Wallet Ponzi scheme are evident in the search for Herzog’s accomplices. Two individuals are still hiding in Dubai, while another suspect is in custody in Brazil awaiting extradition. The exact identities of these individuals are undisclosed, but authorities believe they played significant roles in the scam.
However, it’s worth noting that many scammers disable their payment channels before shutting down their operations.
They might give you multiple reasons including:
- A technical error
- A glitch in their system
- Banking issues
- A “hacking attack”
And many others.
But in 9/10 cases, the scammers actually stop making payments and keep the money to themselves. Hence, the payment methods we discussed here might not work.
If you want to get your money back from a scammer, you’d need to file a chargeback.
When it comes to scammers, you should only measure the quality of their customer service if they respond to your complaint.
In the beginning, scammers tend to remain very accessible.
This means their representatives will keep calling you until you invest with them. Furthermore, they will act friendly and make it seem as if you’re one of their most valuable consumers.
However, they do all this just to win your trust.
Scammers understand that in order to convince someone to give them a large sum, they will need to seem like a friend.
Nevertheless, when you have invested a considerable amount of money and need to get it back, their customer support will become inaccessible.
All of a sudden, their numbers would either stop responding or become unavailable.
Still, they might remain accessible to convince you to invest further. Also, they might begin by making a few excuses regarding your payment.
However, in the end, the customer support won’t resolve your issues and become increasingly unavailable.
It’s worth noting that many scammers tend to purchase fake reviews. Buying fake reviews has become extremely easy and it’s a multi-million dollar industry.
Scammers like EXW Wallet tend to purchase fake reviews for their online profiles to make themselves seem more credible.
TIME Magazine investigated the fake review industry and estimated it to be worth more than $150 million. Certainly, there are a ton of scammers who want to seem legitimate and a bunch of fake reviews is the most effective way to do so.
That’s why you shouldn’t trust EXW Wallet reviews easily.
It’s easy to identify fake reviews as well. You should look out for 5-star reviews that are posted by temporary accounts (profiles which only posted 1 or 2 reviews on the platform). Also, you should see if the positive reviews share any detailed information about their experience with the firm or not.
In the case of EXW Wallet, chances are, you wouldn’t find many legitimate reviews.
Another prominent way scammers like EXW Wallet enhance their credibility is by burying negative reviews and complaints under a lot of fake reviews.
This way, when you’ll look up EXW Wallet reviews”, you might not find many complaints. Or, you might find them buried within numerous reviews praising EXW Wallet.
You should always look out for consumer complaints. In the case of EXW Wallet, the most common complaints I found were about:
- Poor customer support
- Delays in payments
- High fees and charges
- Lack of transparency regarding their leadership team
- Aggressive sales staff
Do you have a similar complaint about EXW Wallet? You can share your complaint in the comment section or submit an anonymous tip.
The EXW Wallet Ponzi scheme serves as a reminder of the dangers that lurk in the crypto industry. With promises of high returns, unsuspecting investors can fall victim to fraudulent schemes orchestrated by individuals seeking personal gain.
As authorities continue their investigation and the trial unfolds, it is crucial to remain vigilant and cautious when navigating the world of cryptocurrencies. By exposing these scams and holding the perpetrators accountable, we can strive for a more transparent and secure crypto ecosystem.
EXW Wallet is an unregulated entity. Although they might fall under the jurisdiction of a watchdog, they don’t have the license to offer financial services to consumers.
The lack of a license means they are not answerable to any regulatory authority. As a result, the people behind EXW Wallet can run away with your money without any prior notice. You should be extremely cautious when dealing with an unregulated service provider.
The absence of a watchdog also means you cannot report to them to anyone.
Also, due to the absence of specific regulations, there is no provision protecting you from the insolvency of this entity. If they go bankrupt, you won’t be able to do anything about it.
Can You Trust EXW Wallet?
All the evidence suggests that EXW Wallet is a scam. If you have lost money to them, there is still a chance you can get it back.
To recover your funds, you’d need to file a chargeback.
Is EXW Wallet a scam?
Can I withdraw money from EXW Wallet?
Where is EXW Wallet Located?
How do I get my money back from EXW Wallet?
Launch a website/app with a generic name
A website or app with a generic name allows scammers to hide behind common Google search results. Marketing such names is easier as well.
Pay influencers & social media pages to promote the scheme
By getting influencers and social media pages to promote their brand, scammers make their shady company seem more legit than it actually is.
Send thousands of emails and make cold calls to potential victims
It’s common for scammers to buy the contact details of people and spam them through email, phone calls, social media messages and other means.
Make victims feel safe through “small wins”
Such small wins usually include a few payments transferred into the victim’s account. This makes them seem more legitimate.
Convince victims into investing large sums of money
Due to the small wins, the victim is now convinced that the company is legit. Now, the scammers try to manipulate the victim into giving them larger sums.
Disable withdrawals & take down the website/app
Once the scammers have recieved a signicant sum, they either stop responding or cite a technical error to freeze their victims’ funds.
Repeat the cycle
After making the money, the scam will shut down and the people running it will launch another and repeat the cycle.