Viennese detectives have uncovered a major fraud operation, identifying a Dutch man behind scams worth €1.2 million. Most of the victims, who lost mainly in cryptocurrencies, were from Austria.

The 39-year-old suspect, who has Serbian roots, was arrested in Milan earlier this year with the help of Europol. In October, the Regional Court of St. Pölten sentenced him to three years in prison, police confirmed on Thursday.

‘Rip-Deal 2.0’

The crimes are being called a new version of the “Rip-Deal” scam. Traditionally, such schemes involve using counterfeit cash to buy luxury goods like expensive watches or gold. This suspect, however, targeted victims’ cryptocurrency accounts.

Vienna’s Rip-Deal Unit has called this updated method “Rip-Deal 2.0.” Despite his focus on cryptocurrencies, the suspect was also found with €200,000 in fake cash.

“These crimes are often carried out by organised gangs from the Western Balkans,” explained Chief Inspector Gerald Goldnagl, head of the Vienna unit.

How the Fraud Worked

The investigation, known as Operation Dallas, started in 2021 when a private investigator from Vorarlberg approached Vienna police. The investigator was helping several victims, including a man from St. Pölten who was trying to sell his flat in Italy.

The scammers, posing as businessmen, offered to help with the sale, demanding a €75,000 commission. They paid the seller with counterfeit cash and disappeared – a classic Rip-Deal.

Detective Valentin Szaga-Doktor said, “We were able to solve this case relatively quickly. Photos and voice recordings of the suspect, known as ‘Kennedy,’ were key.”

Victims Across Europe

As the investigation expanded, more cases linked to the suspect were uncovered. Victims included individuals from different parts of Austria, as well as Switzerland and Germany.

One Austrian businessman narrowly escaped losing €131,000. The scammers had tried to convince him to deposit the money into a cryptocurrency wallet for a fake industrial machinery deal. His daughter, a police officer, spotted warnings about similar scams online and raised the alarm.

The scammers often lured victims into trusting them by inviting them to meet in luxury hotels, often abroad. Detective Mario Kaintz described their methods as “brilliant,” saying they exploited both ignorance and expertise in cryptocurrency.

“They get victims to input their passwords or ‘seed phrases’ for cryptocurrency wallets, sometimes spying on their phone screens using cameras hidden in the ceiling,” he explained.

Once they had the information, the scammers emptied the accounts remotely. “This isn’t even a hack,” Kaintz noted. “Ultimately, you can only hope it doesn’t ruin you financially.”

Criminal History and Investigations

The suspect has a history of convictions dating back to 2009 and 2011, when he served prison time abroad. In 2016, he was investigated for a robbery involving €80,000, though no charges were filed. During his trial, the man paid €100,000 in compensation to one of his victims, which led to a reduced sentence. Two accomplices, a Dutchman and a Serb, remain at large.

Rise in Cryptocurrency Crimes

Since 2020, Vienna’s Rip-Deal Unit has solved 102 cases, with damages totalling €25 million. However, police believe many such crimes go unreported, as victims often fear being implicated, especially when counterfeit money is involved.

Chief Inspector Goldnagl warned, “We’re seeing a sharp rise in cryptocurrency-related crimes. The number of unreported cases is likely very high.”