Jay Clayton's First Public Statement: 18-Year Sentence for Crypto Fraud

Jay Clayton, the recently appointed interim US Attorney for the Southern District of New York (SDNY) and former chair of the Securities and Exchange Commission, has made his first public statements in a criminal case involving crypto fraud. In an April 23 notice, the US Attorney’s Office announced that Eugene William Austin, also known as Hugh Austin, had been sentenced to 18 years in prison. Austin was convicted on charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to commit interstate transportation of stolen property.

Austin, along with his son Brandon, who was sentenced to four years, offered fraudulent crypto investment services. This resulted in approximately $12 million in losses to more than 24 victims. Clayton, in his statement, emphasized the severity of the crime, noting that Austin had involved his own son in the scheme and used investor funds for personal expenses such as luxury hotels.

Clayton's involvement in this case marks one of his first public statements since taking over as the interim US Attorney on April 22. President Donald Trump nominated Clayton on January 20, 2021, when he took office. The Southern District of New York has seen significant changes recently, including the resignation of acting US Attorney Danielle Sassoon. Sassoon stepped down in response to the Justice Department's directive to halt a case against New York City Mayor Eric Adams.

Ask Aime: How will the crypto fraud case against Eugene Austin affect the tech sector?

Under current law, Clayton can serve as interim US Attorney for the district for 120 days without Senate confirmation. Senate Minority Leader Chuck Schumer blocked a vote on Clayton’s nomination, citing concerns over Trump's "no fidelity to the law." Clayton is expected to oversee the SDNY during the sentencing hearing for former celsius CEO Alex Mashinsky and potentially other criminal cases involving cryptocurrency. The district is home to many prominent financial institutions, making it a critical jurisdiction for financial crimes.