Crypto Scam: Eugene William Austin Jr., better known as “Hugh Austin,” has been sentenced to 18 years in federal prison for orchestrating a multi-million dollar crypto fraud scheme that scammed more than two dozen victims out of $12 million.
New York Man Misled Investors with Fake Deals leading a Crypto Scam
The Justice Department also confirmed that his son, Brandon Austin, received a four-year prison sentence earlier in connection to the same crypto scam.
According to U.S. Attorney Jay Clayton, Austin deceived entrepreneurs and investors with fake promises of profitable cryptocurrency investments, short-term trading deals, and bogus brokerage services. He also falsely claimed access to funding from wealthy investors that never existed.
Instead of investing the victims’ money, Austin used the funds for personal indulgences, including luxury hotels, flights, restaurants, and other high-end expenses.
A federal jury convicted Austin in September 2024 on multiple charges including conspiracy to commit wire fraud, money laundering, and transporting stolen property across state lines. The sentencing was carried out by U.S. District Judge P. Kevin Castel.
Austin, 62, of Port Jefferson, New York, will also serve three years of supervised release, forfeit over $6 million in assets, and pay $12.6 million in restitution to the victims.
“This Office will continue to pursue those who exploit trust and use cryptocurrency as a cover for fraud,” said Clayton, praising the efforts of Homeland Security Investigations and the Complex Frauds and Cybercrime Unit.
The case was prosecuted by Assistant U.S. Attorneys Olga Zverovich, Matthew Weinberg, and Andrew Chan.
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