/cdn.vox-cdn.com/uploads/chorus_asset/file/23962442/acastro_STK067__03.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24247717/lp_logo_3.0.jpg){kind=logo}
/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Su)
[ad_1]
US authorities have reportedly arrested Brandon Austin and his father, Eugene “Hugh” Austin, on charges that they perpetrated a massive crypto fraud, embezzling more than $10 million from investors.
Brandon, who has already pleaded guilty, will be sentenced on 6 September.
Attracting investors to raise funds for a lavish lifestyle
according to recent coverageFederal agents took 27-year-old Brandon Austin into custody in April and his father on July 5. US Attorney Damien Williams said the duo preyed on “millions of both sophisticated and novice cryptocurrency investors alike.”
Specifically, the family encouraged people to buy cryptocurrencies through them by promising great returns. However, he cheated every penny and used the money for his own benefit.
Authorities claimed that the wrongdoers stayed in plush hotels, bought luxurious cars and went to expensive restaurants. He also gifted funds to his loved ones via wire transfer. 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 boyfriend.
The two proceeded, throwing glamorous trips to New York, Miami and Europe, inviting investors as special guests, who later realized the parties were organized so the Austin family could recruit new victims.
Each investor walked away with a different amount, with one losing more than $500,000. At one point, they become angry with Hugh, urging him to keep his promise and send him off the property and return to investment. The alleged perpetrator replied candidly:
“I will call you in about 25 minutes. Thanks, Hugh.”
Brandon 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, which was said to be worth more than $60,000.
Both men could face up to 20 years in prison on charges such as money laundering and wire fraud. Magistrates are expected to decide on Brandon’s sentence on 6 September.
A mini version of OneCoin?
The above case looks very similar to OneCoin – one of the biggest frauds in the history of crypto. The Ponzi scheme, run by Ruja Ignatova (aka “the Cryptoqueen”), ran between 2014 and 2016, siphoning off nearly $4 billion from investors.
The ringleader of the scam mysteriously disappeared soon after the 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 since that moment.
Some believe that she is hiding on a luxurious yacht in the Mediterranean Sea, off the coast (where law enforcement agencies do not have the right to arrest her).
other sources are hinted that Ignatova may have been brutally murdered in 2019 because a Bulgarian drug mafia got burned out on investing in her scheme.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
[ad_1]
US authorities have reportedly arrested Brandon Austin and his father, Eugene “Hugh” Austin, on charges that they perpetrated a massive crypto fraud, embezzling more than $10 million from investors.
Brandon, who has already pleaded guilty, will be sentenced on 6 September.
Attracting investors to raise funds for a lavish lifestyle
according to recent coverageFederal agents took 27-year-old Brandon Austin into custody in April and his father on July 5. US Attorney Damien Williams said the duo preyed on “millions of both sophisticated and novice cryptocurrency investors alike.”
Specifically, the family encouraged people to buy cryptocurrencies through them by promising great returns. However, he cheated every penny and used the money for his own benefit.
Authorities claimed that the wrongdoers stayed in plush hotels, bought luxurious cars and went to expensive restaurants. He also gifted funds to his loved ones via wire transfer. 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 boyfriend.
The two proceeded, throwing glamorous trips to New York, Miami and Europe, inviting investors as special guests, who later realized the parties were organized so the Austin family could recruit new victims.
Each investor walked away with a different amount, with one losing more than $500,000. At one point, they become angry with Hugh, urging him to keep his promise and send him off the property and return to investment. The alleged perpetrator replied candidly:
“I will call you in about 25 minutes. Thanks, Hugh.”
Brandon 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, which was said to be worth more than $60,000.
Both men could face up to 20 years in prison on charges such as money laundering and wire fraud. Magistrates are expected to decide on Brandon’s sentence on 6 September.
A mini version of OneCoin?
The above case looks very similar to OneCoin – one of the biggest frauds in the history of crypto. The Ponzi scheme, run by Ruja Ignatova (aka “the Cryptoqueen”), ran between 2014 and 2016, siphoning off nearly $4 billion from investors.
The ringleader of the scam mysteriously disappeared soon after the 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 since that moment.
Some believe that she is hiding on a luxurious yacht in the Mediterranean Sea, off the coast (where law enforcement agencies do not have the right to arrest her).
other sources are hinted that Ignatova may have been brutally murdered in 2019 because a Bulgarian drug mafia got burned out on investing in her scheme.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
