Father and Son Face Up to 20 Years in Prison for Masterminding $10M Cryptocurrency Scam

Those who steal investors' money to live like millionaires will likely spend years in prison.

U.S. authorities have reportedly arrested Brandon Austin and his father, Eugene “Hugh” Austin, charging them with massive cryptocurrency fraud, embezzling investors raised more than $10 million.

Brandon has pleaded guilty and is due to hear on September 6.

Tricking Investors into Funding a Luxurious Lifestyle

Federal agents detained Brandon Austin, 27, in April and his father on July 5, according to recent reports. U.S. Attorney Damian Williams said the pair "victimized millions of cryptocurrency investors, veterans and novice alike."

Specifically, the family promises lucrative returns, encouraging people to buy cryptocurrencies through them. However, they scam every penny and use it for their own benefit.

The criminals stayed in luxury hotels, bought fancy cars and patronized expensive restaurants, officials said. They also gift funds to loved ones via wire transfer. Brandon sent $50,000 to the mother and $32,000 to his girlfriend, while Hugh sent $10,000 to his father and lover.

The pair went a step further, organizing glamorous tours of New York, Miami, and Europe, with investors as special guests, only to understand later that these parties were meant to bring together new victims for the Austin family.

Each investor lost a different amount, with one investor losing over $500,000. At one point, they got mad at Hugh and urged him to keep his promise to send him assets and returns on investments. The suspect confessed:

"I'll call you in about 25 minutes, thanks, Hugh."

Brandon has pleaded guilty and agreed to forfeit $3.4 million and pay $2 million in restitution. Federal agents also seized a 2022 E-Pace P250 Jaguar that was said to be worth more than $60,000.

The pair face up to 20 years in prison on charges including money laundering and wire fraud. A magistrate is expected to decide on Brandon's punishment on Sept. 6.

**A mini version of OneCoin? **

The aforementioned case looks similar to OneCoin, one of the largest frauds in cryptocurrency history. The Ponzi scheme masterminded by Ruja Ignatova, aka "Crypto Queen," ran between 2014 and 2016 and lost an estimated $4 billion from investors.

Shortly after authorities launched an investigation into OneCoin, the head of the scam mysteriously disappeared. Ignatova was last spotted in Athens, Greece, in 2017, and her whereabouts have been the subject of conspiracy theories since then.

Some believe she is hiding on a luxury yacht in the Mediterranean, far from shore (law enforcement agencies have no authority to arrest her).

Other sources suggest that a Bulgarian drug lord was burned for investing in the scheme of Ignatova, who may have been brutally murdered in 2019.