Jay Clayton, the US Attorney for the Southern District of New York, announced that Long Island resident Eugene William Austin Jr. has been sentenced to 18 years in federal prison for leading a fraudulent crypto scheme with his son.
According to an April 23 statement from the US Attorney’s Office, the two deceived investors out of approximately $12 million by pretending to be brokers for large crypto deals and offering fake investment opportunities.
Eugene was convicted in September 2024 for conspiring to commit wire fraud, money laundering, and moving stolen funds across state lines. His son Brandon Austin, who helped carry out the scheme, had already received a four-year sentence.
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Eugene and Brandon promoted short-term crypto investments with the promise of high profits and said they could connect startups to wealthy private investors. More than 24 people fell for these offers.
They also told business owners and entrepreneurs that they could arrange purchases of large amounts of cryptocurrency. One deal alone was worth $5 million, and many others involved hundreds of thousands of dollars.
Instead of investing the money, the two spent it on personal luxuries. The funds were used to pay for high-end hotels, restaurants, shopping, and even a 2022 Jaguar SUV. They also made small payments to some victims to keep them from getting suspicious.
The court has ordered Eugene to forfeit $6,062,564 and to pay back a total of $12,662,564 in restitution. After serving his prison term, he will be subject to a three-year period of supervised release.
Meanwhile, US prosecutors have asked a New York judge to sentence Avraham “Avi” Eisenberg to over six years in prison. What was he found guilty of? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
