Long Island Man Receives 18-Year Sentence for $12M Crypto Fraud Scheme

Eugene William Austin Jr. from Long Island has been sentenced to 18 years in prison after being found guilty of a $12M cryptocurrency fraud scheme. He and his son Brandon deceived investors by posing as crypto brokers. Austin was also ordered to forfeit over $6M and pay nearly $12.7M in restitution. Brandon received a 4-year sentence for his involvement. The case adds to a pattern of significant crypto frauds linked to Long Island.

Eugene William Austin Jr., a resident of Long Island, has been handed an 18-year prison sentence for his involvement in a crypto fraud scheme that deceived investors out of $12 million. Convicted in September 2024, Austin faced charges of conspiracy related to wire fraud, money laundering, and transporting stolen property after a jury trial. The long sentence reflects the serious nature of the offences.

Austin, 62, operated alongside his son, Brandon, acting as a broker for investments in cryptocurrency. They lured in investors with large-scale crypto deals and enticing promises of substantial returns. One fraudulent transaction alone reached $5 million, while many others hovered around the $500,000 mark. Their operation also involved misleading pitches about securing funding for startups through wealthy networks.

According to the U.S. Department of Justice, more than 24 individuals fell victim to this scheme, including many who were acquainted with the father-son duo. Along with the lengthy prison term, Austin is required to forfeit over $6 million and repay nearly $12.7 million in restitution. Additionally, he faces three years of supervised release after his prison term.

Brandon, Austin’s son, has already been sentenced to four years for his role in the fraud. Investigators revealed that the pair used their stolen funds to indulge in an extravagant lifestyle, including stays at luxury hotels and lavish dining, while continuing to make small payments to victims to delay the inevitable exposure of their scheme. Notably, a luxury 2022 E-Pace P250 Jaguar SUV was seized from Austin at the time of arrest.

While Austin’s crimes were significant, they are not the largest crypto frauds to originate from Long Island. Just a year prior, Eddy Alexandre was sentenced to nine years for orchestrating a staggering $248 million Ponzi scheme that defrauded over 25,000 investors, primarily targeting members of the local Haitian community under the guise of a trading platform called EminiFX. The scale of these scams raises ongoing concerns about investor protection in the cryptocurrency space.