US authorities have reportedly arrested Brandon Austin and his father, Eugene “Hugh” Austin, over accusations that they are running a massive cryptocurrency scam, embezzling more than $10 million from investors.
Brandon, who has already pleaded guilty, will hear his sentencing on September 6.
Deceiving investors to fund a lavish lifestyle
According to another coverageFederal agents arrested 27-year-old Brandon Austin in April and his father on July 5. U.S. Attorney Damian Williams said the duo “sacrifice both novice and advanced cryptocurrency investors out of the millions.”
Specifically, the family encouraged people to buy cryptocurrency through them by promising large returns. However, they cheated every cent and used the money for their own benefit.
Officials alleged that the violators stayed in luxury hotels, bought luxury cars and visited expensive restaurants. They also gave money to their loved ones via wire transfers. Brandon sent $50,000 to the mother of his children and $32,000 to his girlfriend, while Hugh handed $10,000 to his father and his lover.
The duo went even further, organizing glamorous trips to New York, Miami, and Europe, inviting investors as special guests who later realized those parties were thrown so the Austins could gather new victims.
Each investor parted with a different amount, and one lost over $500,000. At one point, they became angry with Hugh, urging him to keep his promise and send him the assets and the return on investment. The alleged criminal responded bluntly:
“I’ll call you (sic) in about 25 minutes. Thanks Hugh.”
Brandon pleaded guilty, agreeing to forfeit $3.4 million and pay $2 million in restitution. Federal agents also seized a 2022 E-Pace P250 Jaguar said to be worth more than $60,000.
The two men face up to 20 years in prison on charges such as money laundering and wire fraud. Judges are expected to decide on Brandon’s sentence on September 6.
A mini version of OneCoin?
The above case looks similar to one of the biggest scams in cryptocurrency history – OneCoin. The Ponzi scheme, organized by Ruja Ignatova (aka “The Cryptoqueen”), ran between 2014 and 2016, draining nearly $4 billion from investors.
The head of the scam mysteriously disappeared shortly after authorities launched an investigation against OneCoin. Ignatova was last seen in Athens, Greece, in 2017, and her whereabouts have been the subject of conspiracy theories from that moment on.
Some believe she is hiding out on a luxury yacht in the Mediterranean Sea, far from the coast (where law enforcement agencies are not authorized to arrest her).
other sources for it behold that Ignatova may have been brutally murdered in 2019 after a Bulgarian drug lord was burned for investing in her scheme.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off Binance Futures first month (conditions).
PrimeXBT Special Offer: Use this link to register and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.
