Father and Son Convicted in Major Crypto Fraud That Bilked Investors Out of $12M

Hugh Austin, a convicted crypto fraudster, has been sentenced to 18 years in federal prison for leading a $12 million laundering scheme that allegedly involved his son, Brandon Austin.

According to a 23 April press release from the US Attorney’s Office, the father-son duo posed as crypto brokers, soliciting large investments in digital assets under the guise of making short-term crypto trades promising high returns for entrepreneurs and investors.

They also sought loans from friends and associates, pledging to repay them with interest, and targeted high-net-worth individuals as potential backers for small businesses and startups.

In reality, prosecutors say the Austins misappropriated the funds for personal use—spending lavishly on luxury hotels, flights, fine dining, and other expenses—while issuing only minimal repayments to victims in an effort to maintain the illusion of legitimacy and prolong the fraud.

Jay Clayton, United States Attorney for the Southern District of New York said:

“For years, Hugh Austin was the leader of a fraud and money laundering scheme that stole more than $12 million from more than two dozen victims.”

He added:

“Austin involved his own son in his crimes, working with him to rip off victims and spending investor money on personal expenses, like luxury hotels. Thanks to the work of the career prosecutors of this Office and our law enforcement partners, Austin will now be held accountable for the harm he caused to individual investors and others.”

Crypto Criminals: Father and Son Sentenced

In addition to jail time, Hugh Austin has been ordered to pay over $18 million in restitution and forfeiture, along with three years of supervised release.

His son, Brandon Austin, who was involved in the digital asset scheme, has already been sentenced to four years in prison.

Brandon is currently serving his time at the Lewisburg Federal Correctional Institution, while Hugh is expected to complete his sentence at the Brooklyn Metropolitan Detention Center.

This raises the question: Given Brandon's alleged involvement under his father's direction, should he be held to the same degree of accountability, or is a shorter sentence more appropriate given his lesser role?