Brandon Austin and his father, Eugene “Hugh” Austin, have been arrested by American authorities on allegations of orchestrating a significant cryptocurrency scam, where they are accused of misappropriating more than $10 million from investors.Brandon, who has admitted his guilt, is scheduled to receive his sentencing on September 6th.
Crypto Investors Exploited for Luxurious Living
As per recent reports, federal agents apprehended Brandon Austin, 27 years old, in April, and subsequently arrested his father on July 5. US Attorney Damian Williams stated that the father-son duo “exploited both experienced and inexperienced investors in the cryptocurrency market, defrauding them of millions of dollars.”
The family, specifically, enticed individuals to invest in cryptocurrencies through their scheme, promising significant returns. However, they dishonestly appropriated all the invested funds for their personal gain.
Authorities allege that the perpetrators indulged in a lavish lifestyle, staying at luxurious hotels, purchasing expensive vehicles, and dining at high-end restaurants. Additionally, they used wire transfers to gift money to their loved ones. 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 romantic partner.
Expanding their fraudulent activities, the Austin family took it a step further by organizing extravagant trips to prominent destinations such as New York, Miami, and various locations in Europe. They invited investors as special guests, who later discovered that these lavish gatherings were merely a ploy for the Austin family to identify and target new victims.
Each investor fell prey to varying amounts, with one individual losing over $500,000. Frustrated with Hugh’s deceit, some investors demanded that he fulfill his promises by delivering the promised assets and investment returns. In response, the alleged criminal replied succinctly, stating, “I will call you in about 25 minutes. Thanks, Hugh.”
Brandon, having pleaded guilty, has accepted the forfeiture of $3.4 million and agreed to pay $2 million in restitution. Additionally, federal agents confiscated a 2022 E-Pace P250 Jaguar, estimated to be valued at over $60,000.
Both individuals now face the possibility of up to 20 years in prison, charged with offenses such as money laundering and wire fraud. The sentencing for Brandon is expected to be determined on September 6 by the judges.
A Mini Version of Crypto OneCoin?
The case mentioned bears resemblance to one of the largest cryptocurrency frauds in history, known as OneCoin. The Ponzi scheme, masterminded by Ruja Ignatova, also known as “The Cryptoqueen,” operated from 2014 to 2016 and resulted in the loss of around $4 billion for investors.
Following the initiation of an investigation into OneCoin by authorities, the primary orchestrator of the scam mysteriously vanished. Ignatova was last seen in Athens, Greece, in 2017, and her whereabouts have since become the subject of various conspiracy theories.
Speculation suggests that she may be evading capture on a luxurious yacht, strategically positioned in the Mediterranean Sea, beyond the jurisdiction of coastal law enforcement agencies.In addition, some sources have hinted at the possibility that Ignatova met a gruesome fate in 2019, allegedly at the hands of a Bulgarian drug lord who incurred significant losses as a result of investing in her fraudulent scheme.