Eugene William Austin Jr. Sentenced for Cryptocurrency Fraud
Eugene William Austin Jr., a resident of Long Island, has been sentenced to serve 18 years in prison in connection with a significant cryptocurrency fraud operation that amassed $12 million. The 62-year-old, who is also known by the alias “Hugh Austin”, was convicted in September 2024 on multiple counts, including conspiracy to commit wire fraud and money laundering, as well as conspiracy related to the interstate transport of stolen property.
Details of the Fraud Operation
Austin’s fraudulent activities were carried out in tandem with his son Brandon, whereby they misrepresented themselves as brokers specializing in large-scale cryptocurrency sales. Their deceptive practices targeted entrepreneurs and investors, with some of their fabricated crypto deals reportedly reaching up to $5 million, while others were around the $500,000 mark. Furthermore, the duo promised attractive short-term investment returns and claimed to have connections with wealthy individuals willing to provide funding for emerging businesses and startups.
Impact and Consequences
The Department of Justice indicated that their fraudulent scheme negatively impacted over 24 victims, many of whom were reportedly friends and acquaintances of the Austin family. In addition to the lengthy prison sentence, Eugene Austin has also been ordered to forfeit a substantial sum of $6,062,564 and to pay a total restitution of $12,662,564. After his release, he will undergo three years of supervised release.
Brandon Austin had previously faced the consequences of his actions, receiving a four-year prison sentence. The duo’s extravagant lifestyle was financed through the proceeds of their crimes, allowing them to indulge in luxury items, high-end dining experiences, and even considerable monetary transfers to family members, whilst providing minimal compensation to their victims to extend the duration of their fraud.
Context of the Crime on Long Island
Notably, the crime orchestrated by the Austin men is just one of several high-profile crypto scams to surface from Long Island. In a separate scandal from 2022, Eddy Alexandre was sentenced to nine years for leading a colossal $248 million Ponzi scheme, which lured in over 25,000 investors, primarily from the Haitian community in Long Island, under the guise of a legitimate cryptocurrency and foreign exchange trading platform known as EminiFX, promising unrealistic returns of 5%.
