Long Island Father-Son Duo Jailed for $12M Crypto Scam

A man named Eugene William Austin Jr., who is also referred to as " Hugh Austin," from Long Island has received an 18-year jail term for conning over two dozen individuals via a deceptive multimillion-dollar cryptocurrency investment scam. His son, who was part of his team, was previously handed a four-year sentence.

In September 2024, Austin faced conviction by a jury for offenses including conspiracy to commit wire fraud, money laundering, and transporting stolen goods across state lines. On April 23, 2025, District Judge P. Kevin Castel handed down an 18-year incarceration term followed by three years of supervision post-release. The same judge also issued sentencing for his son, Brandon.

A deceptive financial plan originating from Long Island

According to prosecutors For years, the father, son, and their cohort operated a deceptive investment scam. They lured investors with false promises of substantial gains from crypto and forex trading.

Austin allegedly obtained money from friends, acquaintances, startups, and small enterprises by claiming he would assist them in attracting investors from his network of wealthy individuals. It is reported that his group secured around $5 million in one transaction and approximately $4 million in another.

Rather than fulfilling their commitment, they opted to use the funds for an opulent way of living. According to prosecutors, they squandered the money on shopping sprees, vacations, leisure activities, and various personal indulgences. Additionally, the duo utilized capital from recent investors to settle debts owed to previous participants, showcasing a typical Ponzi scheme tactic. Ponzi scheme tactic.

U.S. Attorney Jay Clayton, who disclosed the sentencing details, stated: " Hugh Austin headed a fraudulent operation involving money laundering; they defrauded over two dozen individuals out of more than $12 million. Not only did he drag his son into this criminal activity but also collaborated with him to deceive these victims and used their funds for personal indulgences such as high-end accommodations."

A combined effort to tackle crime and get restitution

Clayton also thanked the prosecutors and law enforcement partners who were involved in bringing the case to a close, adding that due to their efforts, “Austin will now be held accountable for the harm he caused to individual investors and others.”​

Along with his sentence, Austin, aged 62, must pay $12.66 million as restitution. Additionally, he is required to surrender $6,062,564 along with a 2022 Jaguar SUV and other assets seized when he was arrested.

This case contributes to the increasing number of cryptocurrency scams in the U.S., drawing further scrutiny from authorities in the country. regulators, Moreover, law enforcement agencies state that they have ramped up their initiatives to crack down on these schemes.

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