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U.S. authorities have reportedly apprehended Brandon Austin and his father, Eugene “Hugh” Austin, on allegations of orchestrating a significant cryptocurrency fraud, embezzling more than $10 million from investors.
Brandon, who has already admitted guilt, is set to receive his sentencing on September 6.
Deceiving Investors to Support an Opulent Lifestyle
As per recent reports, federal agents arrested 27-year-old Brandon Austin in April and his father on July 5. U.S. Attorney Damian Williams stated that the pair “exploited both experienced and inexperienced cryptocurrency investors out of millions.”
Specifically, the family urged individuals to invest in cryptocurrencies through them by guaranteeing substantial returns. However, they misappropriated all the funds for personal gain.
Authorities asserted that the offenders resided in luxurious hotels, acquired high-end vehicles, and dined at upscale restaurants. They also transferred money to their relatives via wire transactions. Brandon sent $50,000 to the mother of his children and $32,000 to his girlfriend, while Hugh transferred $10,000 to his father and partner.
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The duo further organized extravagant trips to New York, Miami, and Europe, inviting investors as special guests who would later realize that these events were staged for the Austin family to attract new victims.
Each investor contributed varying amounts, with one individual losing over $500,000. At one point, they expressed frustration towards Hugh, demanding he fulfill his promise and return their assets and investment returns. The alleged perpetrator responded simply:
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“I w call u (sic) in about 25 minutes. Thanks, Hugh.”
Brandon has pleaded guilty, consenting to forfeit $3.4 million and to pay $2 million in restitution. Federal agents also seized a 2022 E-Pace P250 Jaguar, reportedly valued at over $60,000.
The two men could face up to 20 years in prison on charges including money laundering and wire fraud. The judges are anticipated to determine Brandon’s sentence on September 6.
A Smaller Version of OneCoin?
The case in question bears resemblance to one of the largest frauds in cryptocurrency history – OneCoin. The Ponzi scheme, led by Ruja Ignatova (also known as “The Cryptoqueen”), operated from 2014 to 2016, siphoning approximately $4 billion from investors.
The mastermind of the scam vanished mysteriously shortly after authorities initiated an investigation into OneCoin. Ignatova was last seen in Athens, Greece, in 2017, and her location has since been a topic of conspiracy theories.
Some speculate that she is hiding on a lavish yacht in the Mediterranean Sea, beyond the reach of law enforcement.
Other reports suggest that Ignatova may have been brutally murdered in 2019 after a Bulgarian drug lord suffered losses from investing in her scheme.
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