Eugene William Austin Jr. along with his son Brandon both received prison sentences for conning investors out of $12 million cryptocurrency worth funds since April 23, 2025.
The court sentenced Austin Jr. under the name Hugh Austin to a total of 18 years imprisonment on April 23rd, 2025. The court already gave Brandon a four-year prison term for his criminal actions previously.
Years-long fraudulent crypto operation
Prosecutors revealed that Austin and his son led a team that ran a fraudulent investment scheme based in Long Island. They collected millions from individuals and businesses by promising high returns through investments in cryptocurrencies and the foreign exchange market. Victims were lured with claims that Austin could connect them to wealthy investors.
Several key transactions made up this fraudulent scheme. The team obtained $5 million from a business organization which expected to receive investment support. A startup gave $4 million as part of the fraud activities. The intended funds were withdrawn for private expenses although investors thought they would receive investment support. The prosecutors explained this arrangement was a typical Ponzi scheme since money from new investors funded payments to earlier participants.
Lavish spending exposed by investigation
The money was spent on personal luxuries rather than investments. Court documents showed the defendants used investor funds for shopping, luxury hotels, entertainment, and other expenses. U.S. Attorney Jay Clayton stated that Austin, aged 62, led the fraud and involved his own son in the illegal operation.
Clayton emphasized that the team behind the prosecution worked closely with law enforcement to ensure justice. He added that Austin’s sentence reflected the harm done to victims, who were misled and financially devastated.
Court orders restitution and asset forfeiture
Judge P. Kevin Castel ordered Eugene Austin Jr. to pay $12.66 million in restitution to affected investors. In addition, he must forfeit over $6 million, a 2022 Jaguar SUV, and other assets seized during the investigation. The court also imposed three years of supervised release after his prison term.
These fraudulent acts concerning cryptocurrencies have become a major contribution to the expanding pattern of such cases targeting the United States. The crypto fraud sector stays active so law enforcement agents have dedicated resources to make strict regulation enforcement their priority while intensifying their law enforcement work. The Austin defendants were punished as part of a larger movement that protects investors while pursuing financial criminal offenders.