Father-Son Duo Jailed After $12M Long Island Cryptocurrency Scam Conviction

Highlights:

• Eugene Austin Jr. led a $12M crypto scam scheme with his son, targeting 24+ victims.
• They offered fake investment opportunities and spent the money on luxury.
• The court ordered $12.6M in restitution and seized a Jaguar SUV.

A cryptocurrency scam in which Long Island resident Eugene William Austin Jr. was convicted has led to an 18-year imprisonment. Federal prosecutors confirmed that Austin aged 62, swindled more than two dozen individuals in fake cryptocurrency sales and investment scams.

The Department of Justice stated that Austin conducted the scheme in collaboration with his son, Brandon Austin. The pair claimed to be brokers of cryptocurrency and tricked friends, businessmen, and family friends into investing large amounts of digital assets. In addition, they were engaged in bogus sales of short-term fake investment plans and funding promises that were never provided.

Long Island man sentenced to 18 years in prison following conviction at trial for defrauding cryptocurrency investors and others of more than $12 millionhttps://t.co/MBCjHLg4fX

— US Attorney SDNY (@SDNYnews) April 23, 2025

The largest of these fake deals was $5 million, while others were at $500,000. The two also committed to providing startup founders a connection to high-net-worth individuals. However, instead of investing the money in better operations, they spent it on a lavish lifestyle. The Justice Department stated that the victims thought they invested in high-yield crypto investments, but the money was used for something else.

Funds Used for Lavish Spending Rather Than Investment Purposes

In addition to conducting fake crypto deals, Eugene and Brandon used the stolen money to purchase expensive goods and personal necessities. These included accommodation costs, expensive restaurants, designer clothing, and presents for friends and family. As a result, victims were offered little compensation, which was aimed at perpetuating the fraud.

Austin also purchased a 2022 Jaguar SUV, which was also seized by the authorities. A U.S. District Court instructed him to forfeit $6,062,564 and make restitution amounting to $12,662,564. After serving the prison term, he will also have to spend three years on supervised release.

Kevin Castel, the United States District Judge, handed down the sentence after the jury convicted him in September 2024. The charges in the court case were conspiracy to commit wire fraud, money laundering, and transport of the stolen funds. Notably, the judge had before this sentenced Brandon Austin to four years in prison under this regard.

A Pattern of Cryptocurrency Scam Linked to Long Island’s Crypto Scene

The scam involving Austin is something that has been frequently associated with Long Island recently. In 2022, another Long Island man, Eddy Alexandre, was sentenced to nine years in prison for $248 million fraud. His scam targeted more than 25,000 victims under the guise of a fake platform called EminiFX.

Even though significantly less severe compared to the other cases, the Austin case was distinguished because it affected family, friends, and owners of small businesses. U.S. Attorney Jay Clayton stated that Eugene used the trust to deceive victims and had his son in the process.

The Justice Department further stated that it is going to persistently prosecute more cryptocurrency scam operations, which defraud investors and misuse digital assets. Personal connections and manipulation of business trust were also mentioned by the prosecutors as some of the activities carried out by the Austins. The decision made by the court shows the severity of the coordinated fraud committed within the context of cryptocurrency trading.