Those who steal investors' funds to live like millionaires will likely spend several years in jail.
U.S. authorities have reportedly arrested Brandon Austin and his father, Eugene “Hugh” Austin, accusing them of running a massive cryptocurrency fraud that siphoned more than $10 million from investors.
Brandon has pleaded guilty and his trial will be held on September 6.
Entice investors to fund lavish lifestyles
As recently reported, federal agents detained Brandon Austin, 27, in April and his father on July 5. U.S. Attorney Damian Williams said the two “victimized millions of cryptocurrency investors, both veteran and new.”
Specifically, the family encouraged people to buy cryptocurrencies through them by promising lucrative returns. However, they took every penny and used the money for their own benefit.
Officials allege the criminals stayed in luxury hotels, bought flashy cars and patronized expensive restaurants. They also sent funds to loved ones via wire transfers. Brandon sent $50,000 to the mother of his children and $32,000 to his girlfriend, while Hugh sent $10,000 to his father and his lover.
The two went a step further and organized glamorous trips to New York, Miami, and Europe, inviting investors as special guests, parties that they later realized were intended as a way for the Austin family to gather new victims.
The amount of money lost by each investor varied, with one investor losing more than $500,000. At one point, they became angry with Hugh and urged him to keep his promise and send him his assets and investment returns. 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, reportedly worth more than $60,000.
The two face up to 20 years in prison for money laundering and wire fraud. A magistrate judge is expected to decide Brandon's punishment on Sept. 6.
A mini version of OneCoin?
The case described above looks similar to OneCoin, one of the biggest frauds in the history of cryptocurrency. The Ponzi scheme masterminded by Ruja Ignatova, aka “The Crypto Queen,” took place between 2014 and 2016 and drained around $4 billion from investors.
Shortly after authorities launched an investigation into OneCoin, the scam’s leader mysteriously disappeared. Ignatova was last seen in Athens, Greece, in 2017, and her whereabouts have been the subject of conspiracy theories ever since.
Some believe she is hiding on a luxury yacht in the Mediterranean, far from shore (where law enforcement agencies have no authority to arrest her).
Other sources suggest that a Bulgarian drug lord was burned at the stake for investing in Ignatova’s schemes, and that Ignatova may have been brutally murdered in 2019.