Crypto Fraudster Hugh Austin Sentenced to 20 Years for $12M Laundering Scheme

Hugh Austin, a notorious crypto fraudster, has been sentenced to nearly two decades in prison for orchestrating a $12 million laundering scheme that involved his own son. The father-son duo, Hugh and Brandon Austin, operated as crypto brokers, fraudulently managing large sums of digital assets and making short-term crypto investments. They promised high returns to entrepreneurs and investors, but in reality, they misappropriated the funds for personal expenses, including luxury hotels, flights, and restaurants.

The Austins targeted high-net-worth individuals, requesting loans from friends and associates with the promise of returning them with interest. They also sought investments for small businesses and startups, further expanding their fraudulent activities. The scheme lasted for years, with the Austins making nominal payments to victims to prolong the deception.

According to the U.S. Attorney’s Office, the Austins defrauded over two dozen victims, draining $12 million in investor funds. Jay Clayton, United States Attorney for the Southern District of New York, stated that Hugh Austin was the leader of a fraud and money laundering scheme that caused significant harm to individual investors and others.

In addition to his prison sentence, Hugh Austin has been ordered to pay over $18 million in restitution and forfeiture. He will also serve three years of supervised release. Brandon Austin, who was previously sentenced to four years in prison for his role in the scheme, is currently serving his sentence at Lewisburg Federal Correctional Institution. Hugh Austin is expected to carry out the remainder of his sentence at Brooklyn Metropolitan Detention Center.

The case highlights the growing concern over crypto scams and the need for increased vigilance among investors. The Austins' scheme is a stark reminder of the risks associated with digital asset investments and the importance of thorough due diligence. The sentencing of the father-son duo sends a strong message to potential fraudsters, emphasizing the severe consequences of engaging in such criminal activities.