Long Island Man Jailed for $12 Million Crypto Fraud Scheme

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• Eugene William Austin Jr. has been sentenced to 18 years for crypto-related fraud
• He has defrauded investors out of over $12 million through a fake crypto trading business
• His son, Brandon Austin, has received a four-year sentence for his role in the scheme

A Long Island man has been sentenced to 18 years in federal prison for orchestrating a multi-million-dollar cryptocurrency fraud scheme that targeted over two dozen investors. Eugene William Austin Jr., who also went by “Hugh Austin,” falsely claimed to run a crypto trading business, misusing investor funds for personal luxury and gain. His son, Brandon Austin, has also been sentenced to four years for helping run the fraudulent operation.

Fake Crypto Fund Used to Lure Victims

According to prosecutors, Eugene Austin ran the scam between 2018 and 2021, falsely representing to victims that he was running a profitable cryptocurrency trading business. In reality, he operated a classic Ponzi-style scam, using new investor funds to pay off earlier participants, or simply pocketing the money altogether.

The Austins claimed to be using advanced strategies and blockchain technologies to generate high returns, but those claims were entirely fabricated, with U.S. Attorney Jay Clayton outlining the fraud in a press release:

For years, Hugh Austin was the leader of a fraud and money laundering scheme that stole more than $12 million from more than two dozen victims.  Austin involved his own son in his crimes, working with him to rip off victims and spending investor money on personal expenses, like luxury hotels. 

Legal Consequences and Crypto Accountability

Having been arrested and charged in July 2023, a jury this week found Eugene Austin guilty on all major counts, including wire fraud conspiracy, money laundering conspiracy, and interstate transportation of stolen property.

Prosecutors pointed out Brandon Austin’s role in communicating with victims and facilitating fund transfers under false pretenses, noting that his conviction and four-year sentence serve as a reminder that even those operating behind the scenes of crypto scams will be held accountable if caught.